Gold Futures: With our initial target at the 1,130.93 level, its Feb. 22, 2009 high, hit on Tuesday, we are now shifting our attention to the Jan. 20, high at 1,141.48. The commodity has been on the offensive since turning higher off its Feb. 25, 2010 low at 1,088.20 and now a break and hold above the 1,141.48 level is expected to trigger further strength toward the 1,161.88 level, the Feb. 11 high, followed by the psychological level at 1,200 and then the 2009 high at 1.226.33.

Its daily stochastics is bullish and trending higher, supporting this view. On any pullback from its present price levels, its violated resistance at the 1,130.93 level will come in as the initial support with a turn below there triggering further weakness toward the 1,088.20 level. A breach of there will create scope for more downside pressure toward its long-term rising trend line currently at 1,062.83. This level is expected to cap declines if seen. On the whole, with the bulls remaining in charge, risk continues to build toward the 1,141.48/1,161.88 levels.
Mohammed Isah is a technical strategist and head of research at, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and At, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.