Gold followed through lower on its corrective weakness the past week suggesting further losses could be seen in the new week. If this materializes, further weakness should shape up towards the 1,329.25 level, its Dec 16'2010 low. We expect a halt in declines if that level is tested seen thus turning the commodity back up. Further down, support lies at the 1,300.00 level, its psycho level. Its weekly RSI is bearish and pointing lower supporting this view. However, for the commodity to prevent its current bear threats, a break above the 1,432.00 level will have to occur to trigger the resumption of its long-term uptrend. Further strength if it occurs will aim at the 1,450.00 level and subsequently the 1,500 level. All in all, though the commodity still holds on to its long term uptrend, it is presently facing corrective weakness.
GOLD