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The precious metal remains on the offensive pressing higher and increasing risk of a run at the 1,550.00 level, its psycho level.Its present offensive is coming on the back of its recent consolidation at the 1,480.85 level.

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Price extension is expected towards the 1,600 level, its psycho levels if the 1,550.00 level gives way as resistance. Further out, resistance resides at the 1.650 level. Its daily RSI is bullish and pointing higher suggesting further gains.

Alternatively, a return below the 1,493.10 level will annul its present bullishness and call for more declines towards the 1,458.55 level, its April 11’2011.

We expect that level to reverse roles as support and turn the commodity back up in the direction of its primary uptrend if tested. Further down, support comes in at 1,443.70 level, its April 12’2011 low.