GOLD: The commodity remains vulnerable to the downside after weakening for a third day in a row on Thursday though seen trading slightly higher in early trading today. Though retaining its broader upside bias, corrective weakness looks to push further lower towards its psycho level/May 28'10 low residing at 1,202/00.
We expect a breather to occur at that zone and turn the commodity back up again. Further down, its May 24'10 high at 1,182.01 and the 1,166.03 level, its May 21'10 low come in as the next downside targets. Alternatively, if a halt in its present weakness occurs, a retarget of its 2010 high at 1,251.89 will be expected.
Beyond that level will open the door for more up move towards, the 1,300 levels, its psychological level ahead of the 1,350 level. Note that our overall outlook remains to the upside longer term. All in all, Gold continues to retain its longer term bullish structure though seen pressured to the downside.
1,202/00 May 28'10 lows
1,182.01 May 24'10 high
1,166.03 May 21'10 low
1,228.26 Jun 01'10 high
1,249.28 2010 high
1,300 Psycho level.