GOLD (Futures): Gold is now back below the 1,118.35 level, its Jan 13'10 low after failing to push above its intraday high at 1,141.48 today. Though retaining its broader longer term uptrend, its corrective weakness initiated from the 1.226 level remains looks to target further downside towards the 1,093.21 level, its Jan 04'10 low with a turn below there allowing for further downside towards the 1,074.80 level where a halt could be seen. Its daily RSI is pointing lower suggesting further downside weakness. On the other hand, the commodity will have to trade back above 1,141.48 level and then the 1,161.88 level to continue its recovery higher from the 1,074.80 level towards another chart level at the 1,168 level, its Dec 08'09 high. Beyond there will clear the way for a run at the 1,200 level and next the 1,226.37 level, its 2009 high. On the whole, with upside failing and a collapse seeing GOLD turning sharply lower on Wednesday, risk of further downside weakness is likely.

Daily Chart: GOLD

Gold