GOLD: With The commodity bounced off lower level prices during Wednesday, a third such bounces in May’2012. While this portends an upside recovery risk, as long as GOLD continues to trade and hold below its declining trendline, the broader risk remains lower. This means the commodity could return to its recent lows at the 1,527/33 levels. A violation of there will resume its broader weakness towards the 1,500.00 level. Price hesitation could occur here due to psycho level but if that level gives way expect Gold to decline further towards 1,478.05 level. On the other hand, on a break above the mentioned trendline currently at the 1,604 level and the 1,598 level, further price extension could develop towards the 1,624 level and then the 1,670.70 level. Above the latter will open up further upside risk towards the 1,700.00 level. All in all, Gold continues to hold on to its medium term downside bias though attempting a recovery.
