Gold Resumes Recovery, Points Higher

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 ( fxtechstrategy.com) - With gold resuming its corrective recovery and following through higher during Wednesday trading session, further strength is expected in the days ahead. This is coming on the back of a break above the Oct. 17 high of 1,693.95.
Gold

On continued bull pressure the Sept. 23 high of 1,754.55 will be targeted, with a breach there opening the door for a push toward the 1,800 level, its psychological level. Its daily RSI is bullish and pointing higher supporting this view.

Alternatively, on any pullbacks, the 1,693.95 level will come in as the initial support. We expect a reversal of roles as support at this level to occur and turn the commodity higher again. However, a breach of the 1,693.95 level could see gold weakening further toward the 1,595.75 level and then its Sept. low of 1,532.90.

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All in all, while the commodity maintains above the 1,693.95 level, its Oct. 17 high, our bias remains higher on corrective recovery.

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.