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 ( -- This past week gold reversed its gains from the week before. Thus, it looks vulnerable this week and may follow through lower, despite its initial gains early Monday.

Spot gold could weaken further toward $1,595.75, its Oct. 4 low. A breach of that level would leave the yellow metal aiming next at $1,532.90, its September low.

Below that, gold would resume its weakness toward the $1,500.00 psychological level and then its July 1 low at $1,478.05.

Gold's weekly relative strength index is bearish and pointing lower, supporting this view.

In order to restart its corrective recovery, gold will have to return to more than $1,693.95. This would open the door for further strength toward $1,702.31, the Aug. 25 low.

We would expect the latter level to reverse roles and provide resistance, thus turning the commodity back down.

However, if that level got taken out, further recovery strength would build toward $1,754.55, the Sept. 23 high.

Overall, however, gold still faces near-term downside risk.

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.