GOLD: GOLD declined further the past week leaving risk of more weakness on the cards. However, while it trades above its key support zone located at 1,109.00/1,117.00, we may see it head higher in the new week on recovery. On the downside, support comes in at the 1,110.00 level where a break will aim at the 1,100.00 level. A cut through here will open the door for move lower towards the 1,090.00 level.
Below here if seen could trigger further downside pressure towards the 1,080.00 level. Its weekly RSI is bearish and pointing lower suggesting further weakness. On the upside, resistance resides at the 1,135.00 level where a break will aim at the 1,150.000 followed by the 1,170.00 level. A violation of here will turn attention to the 1,190.00 level. All in all, GOLD remains weak and biased to the downside in the short term.
