GOLD: GOLD has ended the week lower after tumbling off the 1,632.85 level and reversing its previous week gains. This development now leaves the commodity targeting 1,557.30 level, its Jun 08’2012 low where a break will drive it further lower towards its key support located at the 1,527 level. A cut through here will resume its broader medium term weakness and then pave the way for further declines towards the 1,500.00 level. Price hesitation could occur here but if that level gives way, expect Gold to decline further towards 1,478.05 level. Its weekly RSI is bearish and pointing lower supporting this view. The alternative view will be for the commodity to return above the 1,632.85 level thus opening the door for more upside towards the 1,670.70 level. Further out, resistance stands at the 1,700 level. All in all, GOLD continues to hold on to its broader medium term downside as it looks to resume that trend.
