GOLD: While a reversal of its Monday losses saw it closing higher on Tuesday, GOLD will have to break and hold above the 1,640.45 level. This if it materializes will create scope for further upside towards the 1,670.70 level. Further out, resistance stands at the 1,700 level. Its daily RSI is bullish and pointing higher supporting this view. The alternative scenario will be for the commodity to turn back lower towards the 1,546/41 levels. 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 All in all, GOLD continues to hold on to its broader medium term downside though recovering.
