Loss Of Upside Momentum Sees Further Weakness.
GOLD (Futures): After weakening for a second week in a row the past week, Gold began the week on Monday following through lower to keep it vulnerable to further corrective downside losses. This is coming on the back of momentum failure at the 989.97 level, its May 31’09 high and the subsequent weakness. Although Gold still retains its medium term uptrend, that trend is now being tempered with the mentioned corrective pullbacks. Risk has now opened for further downside targeting its psycho level at 900 with a clean break of there setting the stage for a run at the 888 level, marking its rising trendline drawn from the 681.30 level (weekly chart). Its weekly and daily RSI are negative and pointing to the downside suggesting further downside losses. On the upside, the 943.15 level, its Jun 08’09 high comes in as the initial resistance ahead of its Jun 10’09 high residing at 965.20.Above there will leave the pair aiming at 981.60 level, its Jun 03’09 high. On the whole, although nearer bias remains lower, the metal continues to maintain its medium term uptrend.
Daily Chart: GOLD
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