The commodity continues to hold above the 1,329.25 level, its Dec 16'2010 low following a return above that level the past week. As long as this continues to happen, we see a recovery risk being triggered towards the 1,152.95 level, its Jan 24'2011 high with a violation of there pushing the commodity further higher towards the 1,378. 80 level followed by the 1,392.25 level, its Jan 13'2011 high. We expect a cap at the latter to turn the commodity back lower but if that fails, a run at the 1.431.28 level and the 1,450.00 level could occur. Alternatively, below the 1,307.60 level will turn our focus to the 1,300.00 level, its big psycho level. We expect this level to provide a strong support and turn the commodity back up on an initial test because of psychological importance. However, if it snaps, except Gold to decline further towards its long-term rising trendline at 1,288.75.
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