The commodity continues to face downside vulnerability as it closed lower reversing its previous week gains at the end of the week. The risk is for Gold to return to its support located at 1,612.10. We may see a breather here but if that fails to occur, further declines could follow towards the 1,522.55 level, its Dec 2011 low. A break of here will open the door for further weakness towards its psycho level at 1,500.00. Alternatively, the commodity will have to return above the 1,714.35 level to annul its present downside threats and then open further upside towards the 1,802.75 level, its Nov'2011 high and possibly higher towards the 1,84 outlook on Gold 50 level. All in all, Gold continues to hold on to its nearer term downside bias.
Commodity