By Patrick MontesDeOca
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.