Let’s take a look at the charts and see what the technical picture is indicating for the near-term price outlook. The yellow metal closed at 1785 for the week. With the price closing above the 61.8% Fibonacci target of 1782, it projects to next challenge the September 2011 highs of 1934.6 as the next objective.
The gold market had a quiet week. It appears the price rally in anticipation of the QE3 announcement by the FED’s is digesting and consolidating the inflationary consequences of Mr. Bernanke announcement that $40 Billion will be committed on a monthly basis as required by the economy and the unemployment indicators. With the unemployment level falling to 7.8% from the 8.1% previously announced monthly record, the gold market was unable to gain enough muscle to close above the 1800 levels on a weekly basis and some profit taking came in near the highs for the day ending the week on a positive note.
The reaction of the gold market after the last FOMC announcement was somewhat of a surprise. Most market participants were looking for an explosive upside move to follow through after the Fed’s decision. Instead, the market might have gotten ahead of itself in anticipating and discounting the long awaited announcement from Mr. Bernanke regarding QE3. Currently, the price is consolidating and processing this information before the next big move from current levels….Click HERE to read more