The commodity built on its recovery started from the 1,307.60 level during Thursday trading session suggesting further bullish incursions are on the way. This is coming on the back of a three-day price hesitation above the 1,329.25 level, its Dec 16'2010 low. As long as that level continues to hold as support, our bias remains to the upside for continued strength towards the 1,378. 80 level, its Jan 19'2011 high. Further out, the 1,392.25 level, its Jan 13'2011 high comes in as the next resistance with a decisive violation of there allowing for further strength towards the 1.431.28 level followed by the 1,450.00 level and possibly higher. Its daily RSI is bullish and pointing higher supporting this view. Alternatively, below the 1,307.60 level will have to be traded to reverse its current recovery build up and turn focus to the 1,300.00 level, its big psycho level. We expect this level to provide a strong support and turn the commodity back up on an initial test because of psychological importance. However, if this snaps, its long-term rising trendline at 1,288.75 will be targeted.
GOLD