GOLD: Hits Further Uncharted Territory
GOLD: Longer term upside momentum continues to be seen pushing Gold to yet another un charted territory today following a fresh all time high the past week. With the new break higher, our medium term target standing at the 1,150 level (psycho level) comes in as the next resistance with a decisive break through there calling for further price acceleration towards the 1,180 level ahead of another huge psychological level at 1,200. Beyond there will bring our long term upside targets at the 1,250 and the 1,300 level into focus. While we are conscious of pullbacks and consolidation along the way, the commodity continues to retain its bullish longer term structure suggesting that such pullbacks if seen will be corrective of its primary uptrend. Momentum indicators both on the monthly and weekly charts are trending higher suggesting further strength. However, if pullbacks occur at the current price levels, its Nov 12'09 high at 1,122.85 will come in as the nearby support with a cut through there allowing further declines towards the 1,101.15 level, its Nov 13'09 low and then its Oct 14'09 high at 1,070.37. On the whole, further upside incursions are expected in Gold while retaining its current bullish outlooks shorter, medium and longer terms.