GOLD may have halted its weakness on Friday, printing a rejection candle to close marginally higher but it continues to hold on to its broader medium downtrend. As long as it continues to trade below its daily 200 ema currently at 1,636 level and its May 01'2012 high at 1,670 level, the above view remains valid for an eventual recapture of the 1,527.05 level. A cut through here will pave the way for further declines towards the 1,500.00 level. Price hesitation could occur here but if that level gives in, expect Gold to decline further towards 1,478.05 level. The alternative scenario will be a return above the 1,635/1,640.45 level. This will pave the way for further correction towards the 1,670.70 level and possibly higher towards the 1,700 level. All in all, Gold continues to hold on to its broader medium term downside bias though facing recovery risks.
Commodity