Although Gold closed lower after failing at the 1,911.15 level the past week, its ability to reverse most of those losses suggests a quick return above the 1,911.15 level. If this is seen in the new week, further upside gain will aim at the 1,950 level followed by its big psycho level at 2,000. We expect this level to present a considerable resistance and turn the commodity lower. Its weekly RSI is bullish and pointing higher suggesting further gains. On the downside, the risk to the above analysis will be a return below the 1,702.31 level, its last week low. This will open the door for a run at the 1,632.60 level, its July 29'2011 high. A reversal of roles as support is expected to turn the pair higher at this level but if that fails and a break below there occurs, further downside weakness will target the 1,600.00 level and possibly lower. All in all, Gold remains biased to the upside in the long term but faces the risk of a correction.
Commodity