GOLD: Remains Vulnerable After Losing Momentum At The 1,790.20 Level

[Mohammed Isah]

GOLD: With Gold losing upside momentum to close lower the past week and opening the new week lower, further decline is now envisaged. This will leave the commodity targeting the 1,648/49 levels with a violation of there allowing for further declines towards the 1,600.00 level, its psycho level. Further down, support comes in at the 1,522.55 level, its Dec 2011 low. Its daily RSI is bearish and pointing lower supporting this view. On the upside, the commodity will have to break and close above the 1,790.20 level, its Feb 29’2012 high to reverse its present downside pressure and resume its medium term uptrend. This if seen will aim at the 1,802.75 level, its Nov’2011 high where a break will turn attention to the 1,862.45 level. All in all, Gold continues to look vulnerable following its loss of upside momentum at the 1,790.20 level.