Gold Continues to Face Downside Risk

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) -- While gold remains bearish and vulnerable to the downside, there is a likely risk of further declines. In such a case, 1,627.50 will come in as the next downside target with a violation of that level opening the door to 1,601.10.

We may see a respite here but if that fails to occur, further declines could follow toward the December low of 1,522.55. A break of here will open the door for further weakness toward the psycho level at 1,500.00.

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Alternatively, the commodity will have to return above the 1,714.35 level to open further upside toward the 1,802.75 level, its November high and possibly higher.

All in all, gold continues to hold on to its nearer-term downside bias.

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.

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