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Commodity Technical Outlook: GOLD

GOLD: Maintains Its Corrective Mode

GOLD: With a loss of upside momentum at the 1,475.90 level and its subsequent correction pushing it to a low of 1,443.70 on Tuesday, risk of further corrective weakness cannot be ruled out. Though closing higher on Wednesday, unless a return above the 1,475.90 level occurs, we may see a decline towards the 1,429.95 level, its April 05’2011 low and then the 1,409.75 level, its Mar 28’2011 low. We expect a halt in declines at that level to turn the commodity back up. Further down, support lies at the 1,380.85 level, its Mar 15’2011 low. Alternatively, on a break and hold above the 1,475.90 level, further strength will build up towards the 1,500.00 level, its psycho level. A clean break of that level will pave the way for a run at the 1,550.00 level and subsequently the 1,600 level, its psycho level. All in all, Gold continues to retain its long term uptrend but faces the risk of corrective pullbacks.