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Commodity Technical Outlook: GOLD

GOLD: Halts Weakness, Strengthens

GOLD: Having halted its corrective declines, Gold closed higher for a second day in a row as it looks to recapture the 1,444/6 levels. A breach will resume its long term uptrend and open the door for more strength towards the 1,450.00 level, its psycho level. Beyond the 1,450.00 level will set the stage for a further price extension towards the 1,500 level, its psycho level.  Its daily RSI has turned  higher supporting this view. On the downside, support lies at the 1,409.75 level with a violation of that level turning risk towards the 1,400 level and the 1,380.85 level, its Mar 15’2011 low. We expect the latter level to provide a strong support and turn the commodity back up if tested, but if it fails, further declines will shape up towards the 1,378 levels. All in all, the commodity has halted its recent weakness and started building up strength with eyes on the 1,444.30/1,446.95 levels and beyond.

Commodity Technical Outlook