GOLD continued to gain in offshore trade as the USD remained weak as equities gained on the back of better than expected US consumer sentiment data. Precious metals are remaining well bid even as equities rise as investors are not piling into the move higher in equities and concerns remain about the global economic recovery. Copper prices rose sharply on the night broadly supporting commodities. Gold finished US trade stronger by 1.60% at $1,788. Another solid night of gains for gold after the pullback from $1,800 to $1,735 looks to be complete. Solid support at $1,750 is limiting any further weakness and now that we have bounced firmly off the level it look inevitable that we will test $1,800/02 this week and push to higher levels as uncertainty remains in the market. Trend support remains intact and we continue to be a buyer of dips rather than breaks higher but a break of $1,800/02 should see another big move occur up towards $1,840 initially and then $1,900/20. It is safe to say that short-term stops on longs should reside below $1,750 and maybe even just below $1,735 as if we go through here we could see a deeper pullback towards $1,695. Solid offers start at $1,792 and build up to $1,802 so we remain a buyer of dips in Asia today towards $1,777 looking for the break above $1,802.
