GOLD: Maintains Above The 1,329.25 Level

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The commodity maintained a marginal close above the 1,329.25 level to keep the possibility of further recovery on the cards. As long as it can hold above the 1,329.25 level, its Dec 16'2010 low we see further recovery risk being triggered towards the 1,152.95 level, its Jan 24'2011 high. A violation of there will push 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 reverse its present bullish attempt and 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, Gold will decline further towards its long-term rising trendline at 1,288.75.

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