GOLD: The commodity is maintaining a second day of weakness following its strong sell off through its key support located at the 1,560.45 level, its Dec 15’2011 low on Wednesday. With Gold now challenging the 1,532.90 level, its Sept’2011 low, a convincing violation of that level will drive the commodity further lower towards its big psycho level at 1,500.00. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, on any recovery, the commodity will aim at the 1,560.45 level, its Dec 15’2011 low where a reversal of roles as support is likely to occur and turn it back lower. However, if this level breaks, further bull pressure could follow towards 1,641.25 level and then the 1,560.45 level, its Dec 15’2011 low. Further out, resistance comes in at the 1,600 level followed by the 1,677.33 level, its Dec 13’2011 high. All in all, Gold continues to hold on to its medium term bearish momentum as it looks to extend its sell off.
