GOLD (Futures): Although Gold reversed a larger part of its Wednesday losses to close marginally lower on Wednesday, it remains vulnerable to the downside as price hesitation has set in though it is currently trading above its broken rising trendline. With the importance of that zone, the commodity has to firmly hold above there to initiate further upside recovery towards the 1,104.08 level, its Jan 25’10 with a turn above there exposing its Feb 03’10 high at 1,125.00. The latter level is expected to reverse roles and provide resistance thus turning the commodity back down. On the downside, support comes in at the 1,072.14/1,073.95 levels with a break below there pushing Gold further lower towards the 1,044.20 level, its YTD low. A loss of the latter will resume its short term downtrend towards the 1,030.85/1,026.55 levels, its Mar’08 high/Oct 28’09 low and then the 986.67 level, its Oct’09 low. On the whole, broader bias remains lower though the commodity is seen correcting.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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