As per our previous recommendation dated 7th September, 2010 of going Long on Spot Gold, of $ 1265 has been achieved.
As seen the price is almost trading at the long term resistances line (R) Hence, in our view profits on long positions (as per our previous recommendation) should be booked at the current levels and fresh long positions should be initiated on dips for (T) $ 1346 (life time high). Strong support is at $ 1248; until this support is breach buying is advisable.
A sustainable break of $ 1296 level from below could trigger a sharp rally targeting $ 1348 (T).RSI is showing some resistance at current level. Volume and Open interest is firm which indicates further bullishness.
