With Gold turning sharply higher and reversing its Tuesday losses during Wednesday trading session, the risk is for the commodity to strengthen further towards the 1,714.55 level. Its present upside offensive is coming on the back of a recovery initiated from the 1,522.55 level. On a cut through the 1,714.55 level, the commodity will target the 1,762.50 level, its Dec 02'2011 high and then the 1,802.75 level, its Nov'2011 high. Its daily RSI is bullish and pointing higher suggesting further strength. Alternatively, the risk to this analysis will be a return to the 1,641.25 level, its Dec 21'2011 high where a violation will target the 1,600.00 level and then the 1,522.55 level, its Dec 2011 low. Below here if seen will open the door for additional weakness towards its psycho level at 1,500.00. All in all, Gold continues to build on its nearer term corrective recovery strength.
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