GOLD: As continued bull strength saw a follow through higher on the back of the Gold’s past week gains, it is now closing in on the 1,500 level, its psycho level.
On a firmed break and hold above this level, further strength will build up towards the 1,550.00 level with a clearance of that level turning risk to the 1,600 level, its psycho level. Both its daily and weekly studies are bullish and pointing higher supporting this view.
On any pullback from its current price levels, the commodity should aim at 1,475.90 level followed by the 1,446.95/1,444.30 levels where a reversal of roles as support is expected to occur.
However, a violation of there will call for more declines towards the 1,400.00 level and subsequently the 1,380.85 level, its Mar 15’2011 low. All in all, Gold has resumed its long term uptrend and now looks to head further higher.