The commodity may biased to the upside ob correction but has to decisively break and hold above the 1,677.95 level to re-establish its corrective recovery. This if seen could put Gold on the path of further strength towards the 1,702.31 level, its Aug 25'2011 low. We expect this level to reverse roles and provide resistance thus turning the commodity back down. However, if taken out, further recovery strength should build up towards the 1,754.55 level, its Sept 23'2011 high. Its daily RSI is supportive of this view. Alternatively, the risk to this analysis will be a return to the 1,532.90 level, its Sept'2011 low with a violation of there turning further downside pressure towards the 1.500.00 level, its psycho level and then its July 01'2011 low at 1,478.05. All in all, Gold remains vulnerable to the downside medium term though attempting to recover higher.
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