With a strong recovery wiping out most of its corrective weakness the past week, Gold is now building up pressure towards its all time high at the 1,911.15 level. A decisive break and hold above this level will pave the way for the resumption of its long term uptrend towards the 1,950 level followed by its big psycho level at 2,000. We expect this level to present a considerable resistance and turn the commodity back lower if tested. Its weekly RSI is bullish and pointing higher suggesting further gains. On the downside, the risk to the above analysis will be a return below the 1,774.35 level and the 1,702.31 level. This will open the door for a run at the 1,632.60 level, its July 29'2011 high. A reversal of roles as support is expected to turn the pair higher at this level but if that fails and a break below there occurs, further downside weakness will target the 1,600.00 level. All in all, Gold remains biased to the upside in the long term as it looks to return above its 2011 high at 1,911.15.
Commodity