GOLD: Pressured To The Upside With Eyes On 1,814.50 Level (Commodity Technical Outlook)

GOLD: With a third day of upside gains pushing the commodity higher in early trading today, further upside risk is now building up on the 1,814 level, its 2011 high. This is coming on the back of a halt of its two-day correction at 1,722.90 on Aug 12’2011. On a clearance of the 1,814.50 level, its 2011 high, the 1,850 level will be targeted with a violation of there allowing for a run at 1,900.00, its psycho level. Further out, resistance lies at the 1,950 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, the risk to the above analysis will be a return below the 1,722.90 level. This will open the door for a run at the 1,632.60 level, its July 29’2011 high. A reversal of roles as support is expected to turn the pair higher at this level but if that fails and a break below there occurs, further downside weakness will target the 1,600.00 level and possibly lower.  All in all, Gold remains biased to the upside in the long term but must break above the 1,814.50 level to resume that trend.