GOLD: Since our last breakout analysis on GOLD, it has continued to strengthen breaking to an all time high of 1,058 today and holding firmly above its violated resistance at 1,030.85. We maintain out bullish longer term view on Gold as long as it holds above the latter support and with the psycho level(1,050) highlighted in our last analysis being invalidated today, the 1,100 level is now beckoning as upside offensive remains in  progress. Beyond there will pave the way for further higher prices towards the 1,130 level, its psycho level ahead of the 1,150 level. While trees don't grow to the sky and trends do not go straight, pullbacks/consolidation could occur in the days ahead to digest its current upmove as it approaches its big psycho level at 1,100 level. However that pans out if seen, it should be corrective. Supports reside at the 1,048.23 level, its Oct 07'09 high with a breach of there accelerating further lower towards the 1,030 level, its 2008 high. This level is expected to reverse roles and provide thereby turning the commodity higher again. The bulls are expected to step in and take control at this stage. If that level snaps, we could witness further deceleration towards the 1,024 level, its Sept 17'09 high. On the whole, with both price and momentum indicators pointing higher, the commodity looks to maintain its longer term upside offensive.

 

 

 

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