Gold Clears 50% Retracement level, Targets 658.91

Gold continues to push higher breaking through the 636.88, 50% retracement of the decline from 730.25 to 543.50. Momentum conditions continue to provide a positive backdrop and potential is seen for further strength near-term. The break higher has paved the way for a move towards 658.91 next, the 61.8% retracement level and if this level gives way, 686.18 would be exposed. This latter level is the 76.4% retracement. With the near-term trend still looking constructive, support initially at 620.70, July 10 low, would need to remain intact. A break would provide an early signal that the recent corrective rally has run its course. STRATEGY: look for further corrective gains with potential for a climb towards 658.91.