With Gold failing at the 1,920.50 level and closing lower the past week, risk of further corrective weakness is now envisaged. If this occurs, further weakness should shape up towards the 1,792.50 level, its last week low. Further down, support lies at the 1,774.35 level and the 1,702.31 level with a loss of the latter opening the door for a run at the 1,632.60 level, its July 29'2011 high. Its overbought condition is supportive of this view. Alternatively, the commodity will have to break and hold above 1,920.50 level to resume its long term strength towards the 1,950 level followed by its big psycho level at 2,000. We expect this level to present a considerable resistance and turn the commodity back lower if tested.

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