Gold is trading above it bull channel....>

GOLD TECHS: Gold is trading above it bull channel resistance that today

intersects around the $1395.00 level. There has not been a pause in the up-trend

that could have developed around the top of the channel given the importance of

it as a resistance and also taking into account the steepness of the current

uptrend.

- Steep trends technically are regarded as being unsustainable and these

conditions highlight the risk of a potentially volatile move in the opposite

direction. I think that consideration should be taken on board when looking at

gold given the steep appreciation in its value over June. This does not mean the

trend won't extend. It does however highlight that any change in the risk

factors that are currently supporting gold may likely see a very sharp reversal

in the price level. This would allow the trend to retrace to a more "rational"

level as it looks to find support.