GOLD: As a sharp rally through its recent high at the 1,011 level saw Gold maintaining its medium term uptrend triggered off the 781 level, its 2008 low today, pressure has started building on the 1,030.85 level where its all time high is located. We believe that while the commodity holds above its broken symmetrical triangle as well as its MT rising trendline drawn off the 781 level, possibility of a break through the 1,030.85 level and an eventual resumption of its longer term uptrend remains on the cards. If this scenario plays out, we should see a move further higher towards the 1,050 level and the 1,100 level. This view is supported by its weekly RSI which is now bullish and trending higher. On the other hand, if corrective pullbacks are triggered, we could see declines aiming at the 1,011 level where its minor support is located at first followed by the 989 level, its May high and then the 971.60 level, its Aug 08’09 high with a break below there pushing it lower towards its MT rising trendline currently at 931.00 where a cap is expected. On the whole, having continued to strengthen, Gold now has its focus on its longer term uptrend resumption.

 

 

 

This report is prepared solely for information and data purposes. Opinions, estimates and projections contained herein are those of FXTechstrategy.com own as of the date hereof and are subject to change without notice. The information and opinions contained herein have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness and neither the information nor the forecast shall be taken as a representation for which FXTechstrategy.com incurs any responsibility. FXTstrategy.com does not accept any liability whatsoever for any loss arising from any use of this report or its contents. This report is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this report