Aug Gold was up for the 3rd straight day and finished the week strong on optimism that the ECB is prepared to move ahead on supporting the Euro.

The market began its ascent mid-week on expectations that the US Fed could possibly embark on a 3rd round of QE before the election.

Then the following day ECB President Mario Draghi stated in a speech that the Bank was prepared to do what was necessary, within its mandate, to defend the EUR, that followed today by a report in the French press that the ECB will co-ordinate with the EU stabilization funds on a plan to purchase Spanish and Italian debt.

The EU news sparked a major recovery in the EUR against the USD, which supported Gold prices. Gold stalled a bit Friday morning after the 2nd GDP number came in at +1.5%, which was better than expected and may have had some traders second guessing the ideas for the Fed acting soon.


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Sept Silver broke out above its 3-wk trading range last week on optimism that the EU was working towards a solution to the debt crisis.

This lent strength to the Euro, global equity markets and precious and industrial metals, including Silver. Sept Silver rallied to it highest level since 5 July, but it failed to follow through on that and ended the session with moderate gains.

Like Gold, Silver stalled on the better than expected US GDP data.
Copper edged higher, boosted by returning confidence in the EUR after the European Central Bank's chief reinforced a commitment to the single currency, while focus shifted to a Key US economic indicator later in the session.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.