Having broken and held below its key support at the 1,666.90 level, its Nov 21'2011 low, Gold faces the risk of further bearish momentum in the days ahead. This is coming on the back of a loss of upside momentum at the 1,802.75 level and its subsequent weakness. On continued declines, the commodity will aim at the 1,532.90 level, its Sept 26'2011 low where a respite may occur and turn it back up. However, if this fails, further weakness should develop towards its psycho level at 1,500.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness. Alternatively, to annul its present bearishness, the commodity will have to return to the 1,666.90 level where a violation will expose the 1,762.50 level. Further out, upside target resides at the 1,802.75 level, its Nov'2011 high with a cut through there turning risk towards the 1,827.85 level, its Sept 19'2011 high. All in all, Gold continues to weaken having violated and held below the 1,666.90 level and its daily 200 ema at 1,622.09.
Commodity