The commodity saw a reversal of its Friday day gains to close lower at 1,777.90 on Monday. With Gold remaining weak and maintaining its corrective weakness triggered from the 1,920.50 level, its 2011 high, further declines cannot be ruled out. If this occurs, its major support located at the 1,702.31 level, its Aug 25'2011 low will be targeted with a loss of that level opening the door for a push further lower towards the 1,632.60 level, its July 29'2011 high. Its daily RSI is bearish and pointing lower suggesting further weakness. On the upside, the commodity will have to break and hold above 1,920.50 level, its 2011 high to resume its long term strength (now on hold) towards the 1,950 level followed by its big psycho level at 2,000, its big psycho level. We expect this level to present a considerable resistance and turn the commodity back lower if tested. All in all, Gold may be biased to the upside in the long term, but faces corrective weakness risks.
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