GOLD - Set To Strengthen To 1,249.28

After a fifth day of recovery on Friday to end the week higher and taking back part of its weakness started from the 1,249.28 level, the commodity now looks to strengthen further towards the 1,226.33. It traded to as higher as 1,217.88 in today's trading session. A decisive break through its 2009 high at 1,226.33 is required to create scope for further strength towards the 1,249.28 level, its 2010 high with a break of there setting the stage for a move higher towards the 1,300 levels, its psychological levels and next the 1,350 level. Note that our overall outlook remains to the upside longer term. On any pullbacks, its psycho level residing at 1,200 will be targeted ahead of the 1,166.03 level, its May 21'10 low. A cap is expected here to turn the commodity back up in its original direction. Further out, the 1,156.90 level, its May 05'10 comes in as the next support. All in all, though Gold is now on the offensive, it requires a break and hold above the 1,249.28 level to resume its longer term uptrend.