GOLD: Builds On Bullish Offensive, Set For The 1,900/50 Levels.

GOLD: As continued bullish momentum saw the commodity following through higher on the back of its last week gains today, risk of further rally is expected towards the 1,900.00 level, its psycho level. With both its daily and weekly RSI bullish and pointing¬† higher, further bull pressure should target the 1,900 level with a breach creating scope for further upside towards its big psycho level at 2,000. On the downside, support lies at the 1,856.85 level followed by the 1,814.50 level, its Aug’2011 high. A reversal of roles as support is expected to occur here and then turn the commodity back up in the direction of its long term uptrend. However, if this fails to happen, further corrective weakness could follow towards the 1,731.85 level and subsequently the 1,632.60 level, its July 29’2011 high. All in all, Gold remains biased to the upside in the long term as it looks to strengthen towards the 1,900/50 levels.

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