GOLD: With Gold halting its recovery and tumbling lower on Tuesday, the risk is for it to weaken further despite a mild upside attempt on wednesday. In such a case, its initial support stands at the 1,634.10 level with a breach of there turning attention to the 1,601.10 level. A breather may occur here but if taken put, attention will turn to the 1,522.55 level, its Dec 2011 low. A break of there will open the door for additional weakness towards its psycho level at 1,500.00. Its daily RSI is bearish and pointing lower supporting this view. Alternatively, in order for Gold to halt its present weakness, it will have to break and hold above the 1,714 level. This if seen will target the 1,802.75 level, its Nov’2011 high. All in all, Gold continues to face its downside vulnerability nearer term.
