The commodity remains vulnerable to the downside as it continues to consolidate its declines started from the 1,265.05 level, its 2010 high. Though still retaining its bullish long term price structure, a clean violation of the 1,184.71 level will trigger the resumption of its nearer term weakness started from the 1,265.05 level, its 2010 high. This should bring bear pressure towards the 1,166.03 level, its May 21'10 low where a breather could occur and turn the pair higher. To avert the above scenario, Gold will have to break and hold above the 1,265.05 level, its 2010 high to create scope for further up move towards its psycho logical level at 1,300 levels. A cut through there will set the stage for a run at the 1,350 level, its psycho level. Additional upside objectives are located at the 1,400 level. All in all, Gold is nearer term biased to the down side.
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