GOLD: Declines, Faces Further Bear Pressure.
GOLD - Since losing upside momentum and tumbling off the 1,920.50 level in early Sept’2011, Gold has embarked on a correction and continues to weaken. That weakness is set to continue as a follow through lower on its Thursday sell off is now underway suggesting the 1,756.50 level will be targeted with a push below there paving the way for further weakness towards the 1,702.31 level. Price hesitation may occur here and turn the commodity back up but if that level breaks, the 1,632.60 level, its July 29’2011 high will be aimed at. Its bearish RSI is supportive of this view. Alternatively, the commodity will have to break and hold above the1, 920.50 level, its 2011 high to end its present bear pressure and resume its long term uptrend towards the 1,950 level followed by its big psycho level at 2,000. We expect this level to present a considerable resistance and turn the commodity back lower if tested. All in all, Gold remains biased to the upside in the long term but faces a nearer term corrective pullback risks.