What Happened to Gold's Rally?

03/10/2010 9:43 am EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

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Gold rallied above the February highs, but then reversed and is now testing the short-term uptrend. A failure to rally soon will be a short- term negative. There is key support for the April contract at 1084. A drop below this level will suggest a decline to the recent lows below 1050, if not the 127.2% extension target and the 50% support in the 1000-1020 area. Daily OBV did confirm the December highs, but is still in its trading range. A breakout should lead prices. Breakout level at 1146.

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