Our call for a further corrective weakness continues to pan out as Gold followed through lower on Monday after its past week losses. This technical development now leaves the commodity targeting the 1,329.25 level, its Dec 16'2010 low. We expect a price hesitation or halt if a test of that level is seen thus turning the commodity back up. However, if that gives in, further weakness will aim at the 1,300.00 level, its psycho level. Its daily studies are bearish and pointing lower supporting this view. On the other hand, though the commodity still retains its broader long term uptrend, it requires a break and hold above the 1.431.28 level to trigger that uptrend. This will resume its long-term uptrend and activate further strength towards 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 continues to face the risk of further corrective declines.
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