Weekly Outlook Mar 04 - Mar 08

Gold's rebound attempt starting 21 Feb ended on 26 Feb at 39000 level resistance and weakened further to the end of the week testing 37725. Near term outlook remains Bearish and recent fall from 43358 is still expected to continue. Below 37500 level will target 36000 psychological level. Look very carefully for a bottoming signal in this zone. Meanwhile, a break and hold of current resistance of 39000 will indicate a short term bottoming at the levels mentioned above and bring a rebound. To get to 39000 level it will first have to break this trend line shown in the image. A break of 41000 psychological level is needed to indicate reversal or the risk remains for downside.