Gold Trends to $1,700

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( TheStreet) -- With a strong rally pushing gold through the 1,600/50 levels on Tuesday and a follow-through seen in early trading today, further strength now eyes the 1,700 level, its psychological level.

A violation of that level will allow for a move higher towards the 1,750 level and then the 1,800 level. Its weekly and daily RSI are bullish and pointing higher supporting this view. Alternatively, on any pullback, gold will aim at the 1,632.60 level, its July 29, 2011 high.

A reversal of roles as support is expected to turn the pair higher at this level but if that fails and a break below here occurs, further downside weakness will target the 1,600.00 level and possibly lower.

All in all, Gold has triggered its long term uptrend and now eyes the 1,700/50 levels.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, 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 FXTechstrategy.com. 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 FXstreet.com. At FXTechstrategy.com, 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.