Although Gold backed off lower prices to close higher the past week, it continues to hold on to its broader downside bias. As long as it trades and holds below the 1,679/96 levels, the risk is for the commodity to target its support located at 1,612.10. We may see a breather here but if that fails to occur, further declines could follow towards the 1,522.55 level, its Dec 2011 low. A break of here will open the door for further weakness towards its psycho level at 1,500.00. Alternatively, the commodity will have to return above the 1,714.35 level to annul its present downside threats and then open further upside towards the 1,802.75 level, its Nov'2011 high and possibly higher towards the 1,84 outlook on Gold 50 level. All in all, Gold continues to hold on to its nearer term downside bias.
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