As continued recovery higher remains in force, further strength is now expected towards the 1,576.20 level, its 2011 high. Although Gold continues to maintain its bullish long term uptrend, it must break and hold above the 1,576.20 level to resume that uptrend. This will open the door for more gains towards its psycho level at 1,600 and then the 1,650.00 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support resides at the 1.526.26 level, its May 11'2011 high with a turn below there targeting the 1,470.00 level and then the 1,462.15 level, its May 05'2011 low. Further down, its .618. Fib Ret (1,380.85- 1,576.20 rally) at 1,455.00 comes in as the next downside target. All in all, Gold remains biased to the upside in the long term but must take out the 1,576.20 level to resume that trend.
