Is GOLD COMEX Poised for Upside.....??

SHORT TERM TECHNICAL OUTLOOK:

GOLD COMEX made a double bottom pattern  on weekly Charts, found a Strong Support @1180$ and has retraced towards higher levels @1325$, Fibonacci levels of 23.6% comes out to be 1350$. After a Hefty correction from 1920$ to 1180$ which comes out to be approx. 740$ correction per ounce in last 2.5 years, Now we may see some bounce towards higher levels. Currently Trading @1310- 1315$ which is a strong weekly support zone. In August 2010 from these levels @1310 GOLD saw a strong rally towards 1920$.

Hence we Recommend buy GOLD COMEX till 1310$ (CMP: 1324) with SL of 1285$ and targets of 1350$.

PREVIOUS WEEK DATA IMPACT ON US ECONOMY:

SLOW DOWN IN HOUSING SECTOR:

The extreme cold of January took a heavy toll on the housing sector including housing starts which plunged 16.0 percent, Which is Negative Signal for the US Economy and hence we may see Buying resuming in Precious Metals

JOBLESS CLAIMS SLIGHTLY LOWER:

Jobless claims are steady and point to intend readings for the February employment report. Initial claims for the February 15 week, which is also the sample week for the monthly employment report, edged 3,000 lower to 336,000. Which does not proves any Major improvement in US economy.