GOLD: Extends Weakness, Breaks Key Support

By Roger Baettig | May 14 2012 3:57 AM

With the commodity breaking its key support standing at 1,612.10 the past week, the risk is for GOLD to weaken further into the new week. In such a case, the 1,522.55 level, its Dec 2011 low will come in as the next downside target with a break of here opening the door for further declines towards its psycho level at 1,500.00. Its daily RSI is bearish and pointing lower. Alternatively, the commodity will have to return above the 1,714.35 level to annul its present downside threats and then open further upside towards the 1,802.75 level, its Nov'2011 high and possibly higher towards the 1,84 outlook on Gold 50 level. All in all, Gold continues to hold on to its short term downside bias. Commodity