GOLD: Threatening To Recapture The 1,265.05 Level

GOLD: The commodity's recovery triggered from the 1,265.05 level halted and subsequently rallied higher on Thursday. With a build up on those gains seen today, risk of a run at its 2010 high at 1,265.05 is likely with a break of there turning attention to its psycho level at 1,300. Above there will clear the way for a run to the upside towards the 1,350 level, its psycho level followed by the 1,400 level and then the 1,450 level. Alternatively, support resides at the 1,224.48 level with a turn below there allowing for more downside towards its Jun 14'10 low at 1,215.95 ahead of its psycho level at 1,200.00 with a loss of there triggering further weakness towards the 1,166.03 level. We expect the former to provide a strong support and push the commodity back up. Overall, with the commodity breaking through its 2010 high, further strength is expected towards the 1,300 level and beyond though presently holding below the 1,265.05 level.