GOLD: With a recovery attempt at the 1,693.95 level, its Oct 17’2011 high failing and turning the commodity lower, further downside pressure is now building up. This is coming on the back of a third-day of lower close on Wednesday. However, Gold will have to break and hold below its Oct 04’2011 low at 1,595.75 to signal a return to its key support the 1,532.90 level, its Sept’2011 low. A breach of here will resume its medium term weakness towards the 1.500.00 level, its psycho level ahead of its July 01’2011 low at 1,478.05. Its daily RSI is bearish and pointing lower supporting this view. On the upside, to restart its corrective recovery, the commodity will have to return above the 1,693.95 level traded on Oct 17’2011 high. Above here will pave the way for push towards the 1,702.31 level, its Aug 25’2011 low. We expect this level to reverse roles and provide resistance thus turning the commodity back down. However, if taken out, further recovery strength should build up towards the 1,754.55 level, its Sept 23’2011 high.
