GOLD: With a temporary bottom now in place and an attack on the 1.526.26 level, its May 11’2011 high seen in today’s trading, risk of further strength is likely to occur. In such a case, the 1,576.20 level, its 2011 high will be targeted with a breach of that level setting the stage for further gains towards its psycho level at 1,600 and then the 1,650.00 level.
On the downside, support resides at the 1,470.00 level and the 1,462.15 level, its May 05’2011 low where a breach will reverse its present gains and resume its weakness towards its .618. Fib Ret (1,380.85- 1,576.20 rally) at 1,455.00.
A test of this level is expected to provide a strong support and turn the commodity back up in the direction of its larger trend. However, if this fails, the 1,443.70 level, its April 12’2011 low will be targeted.