September 3, 2012

All Eyes on Gold

All eyes on gold and no wonder! August has been rather turbulent for the gold price, but in a good way of course.

Right now gold is in a holding pattern of around $1650, and it took it only a week to overcome the $1665-1675 price range, which is a sign of a strong and sure upward trend.

With the door opened to more quantitative easing just a little bit more, gold could continue to rally. Spencer Patton, founder and chief financial officer at Steel Vine Investments, said while Bernanke didn’t officially offer quantitative easing in his speech last Friday, it’s on the table. “Markets and gold should rally on this all next week,” Patton said.

The majority of Kitco Gold Survey participants (62.5%) this week have shared his opinion and are being positive about the price rise.

The experts that are being less bullish expect the market to stabilize around current levels before deciding on its next path.

But what could this next path be? The next price range that is really hard to reach and to contain is 1755-1800. In our opinion the correction can only take place in this area, with $1700-1705 and $1715 – 1725, as intermediate benchmarks.

Let us see, what is in store. Stay tuned and bullish!

Our best regards,
GBULLION team

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