Gold Futures Seen Recapturing 2009 High

By Mohammed Isah of fxtechstrategy.com

Gold futures are likely to recapture their 2009 high and go even higher.

With a strong rally pushing gold through the 1,192.20 and 1,200 levels to test a high of 1,213.55 this week, the risk of a recapture of the 1,226.33 level, the 2009 high, is now building.

As long as gold holds and trades above its psychological level/May 4 high at 1,200/1,192.20, our upside view remains valid.

Beyond the 1,226.33 level, gold will resume its long-term uptrend and have a chance to move toward the 1,250 and the 1,300 levels.

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The latter level is expected to turn the commodity back down on an initial test. However, a breach of it would leave gold aiming at the 1,350 and the 1,400 levels.

Gold's weekly relative strength index (RSI) remains supportive of this view.

On any pullback from its current price levels, Gold futures should find support initially at the 1,200 level. A turn below there would allow for further weakness toward the 1,192.20 level, where a reversal of roles is likely to occur. Further support lies at the 1,156.90 level, the May 5 low.

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