GOLD: Weakens, Targets The 1,554 level

GOLD: With a second day of downside seeing GOLD declining strongly on Thursday, further downside is likely. This has exposed the 1,554 level where a violation will aim at the 1,530.00 level followed by the 1,500.00 level, its psycho level. We expect a price hesitation to occur here if tested but if broken we could see further weakness towards the 1,478.05 level. Its daily RSI is bearish and pointing lower supporting this view. On the upside, resistance resides at the 1,602.00 level and then the 1,619.00 level. A turn above here will target the 1,669 level where a break will aim at the 1,695 level. All in all, GOLD remains vulnerable to the downside medium term.