GOLD: Broader Bias Remains Lower

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 ( -- Gold weakened further to close lower the past week, opening up further downside risk. Though a hammer candle is now in place and triggered a mild recovery the past week, a full-fledged corrective recovery is required to prevent an early return to the Sept. low of 1,1532.90. A move lower will pave the way for a run at the psychological mark of 1.500.00, ahead of its July 1 low of 1,478.05. Its weekly RSI is bearish and pointing lower suggesting further weakness.

On the other hand, further recovery could target the Aug. 25 low of 1,702.31. We expect this level to reverse roles and provide resistance, thus turning the commodity back down. However, if taken out, further recovery strength should build up toward the Sept. 23 high of 1,754.55, followed by the Sept. 19 high of 1,827.85.

All in all, gold remains vulnerable to the down side medium term though attempting to recover higher.

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.