GOLD: Remains In Corrective Mode.

GOLD: While GOLD may be retaining its broader medium term uptrend, it continues to face downside vulnerability. Support lies at the 1,736.15 level where we expect a halt to occur and turn the commodity higher but if this fails to occur, expect further declines towards the 1,700 level. Further down, support lies at the 1,640.45 level. On the upside, resistance resides at the 1,790 level on ending its present bear threats. A violation will resume its medium term uptrend and open more upside risk towards the 1,800.00 level. Further out, resistance resides at the 1.850 level where a violation will call for a move higher towards the 1,900 level and then the 1,950.00 level. All in all, GOLD continues to hold on to its medium term bullish tone but faces bear threats.

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