Gold Weakens Further, Points 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 failed in recovery attempt at the Oct. 17 high of 1,693.95, turning the commodity lower. Further downside pressure is now building.

This is coming on the back of a third day of lower closes on Wednesday. However, gold will have to break and hold below its Oct. 4 low at 1,595.75 to signal a return to its key support at the Sept. low of 1,532.90.

A breach of that level will permit its medium term weakness to resume toward the 1.500.00 level, ahead of the July 1 low at 1,478.05. Its daily RSI is bearish and pointing lower supporting this view.

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On the upside, to restart its corrective recovery, the commodity will have to return above 1,693.95, traded on Oct. 17. Above there will pave the way for a push toward the Aug. 25 low of 1,702.31 level, its Aug. 25 low. 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 1,754.55 level, its Sept. 23 high.

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.