Oil N Gold: Gold Weekly Technical Outlook

Gold surged to another new record high of 1881.4 last week and closed the week strong. Initial bias remains on the upside for 1900 psychological level and then 161.8% projection of 1309.1 to 1577.4 from 1478.3 at 1912.4 next. On the downside, below 1824.5 minor support will turn bias neutral and bring retreat. But downside should be contained above 1725.8 support and bring another rise.

In the bigger picture, gold's up trend from 2009 low of 681 is still in progress and momentum remains strong even though RSI in weekly and monthly charts are both in overbought region. As long as 1577.4 resistance turned support holds, we'll stay bullish in gold and expect the up trend to extend to 2000 psychological level next.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253 and there is no sign of topping yet. Current up trend could now be targeting 161.8% projection of 253 to 1033.9 from 681 at 1945.6. Sustained trading above 2000 psychological level should pave the way to 261.8% projection at 2727.2.