GOLD: A Climb Back Above The 1,169.70 Level Expected

GOLD (Futures): With a wipe out of most of its previous week losses occurring the past week, bull pressure has started building up towards the 1,169.70 level, its 2010 high. The commodity maintains a clear upside theme in the medium-term buttressed by its long-term rising trendline originated from the 700.22 level. Eventually overcoming the 1,169.70 level will mean a resumption of its 2010 gains towards its psychological level at 1,200 with a clearance of there paving the way for a run at its 2009 high at 1,226. Pressure will build on the 1,250 level if the 1,226 level gives in. Its weekly RSI is bullish and pointing higher supporting this view. Conversely, the commodity has its first support at its April 19’10 low at 1,123.70, and its long-term rising trendline presently at the 1,094.70 level. A cap is likely there thus turning Gold in the direction of its primary trend. Overall, having halted its recent declines and sustained a hold above the 123.70 level, risk remains to the upside with eyes on the 1,169.70 level