Gold continues to build on its recovery started off the 1,360.90 level. However, we will like to see it return above its broken rising trendline to convince the market of a possible retarget of the 1,432.00 level. Above there will resume its broader bullish long-term structure towards the 1,450.00 level and subsequently the 1,500 level. Its daily stochastic has turned higher supporting this view. To annul its present bull pressure and resume its weakness from the 1,432.00 level, the commodity will have to break and hold below the 1,352.58 level. This will bring further losses towards the 1,360.90 level and then the 1,329.25 level, its Dec 16'2010 low. We expect a halt in declines at that level if seen thus turning the commodity back up. All in all, though Gold still holds on to its long-term uptrend, it has to break above the 1,432.00 level to resume that trend.
GOLD