The US Federal Reserve's meeting next week in Jackson Hole, WY. will have the attention of the financial markets, because the minutes from this month's FMOC meeting signaled the Fed moving closer to anouther round of quantitative easing (QE-3).
Precious metals markets rallied after the Fed said members thought that "additional monetary accommodation would likely be warranted fairly soon" unless the economy started to pick up.
Market players saw that as a sign that QE-3 may be at hand, and all ears will be on US Fed Chairman Ben Bernanke to see if he builds on the QE theme.
Many market players now are seeing a further rise in Gold and Silver prices up, they include; bullion dealers, investment banks, futures traders, money managers and technical chart analysts like me.
Prices are up on the day and on the week.
Dec Gold finished at 1,672.90, + 3.3% on the week.
Sept Silver finished at 30.621, +9.4% on the week.
The precious metals complex has cracked resistance marks and is set to extend over the next several weeks as I see it.
The move over 1,650 garnered the attention of traders as this was the top of the trading range Gold has be within all Summer.
Momentum and Technical's are Gold's friend in here, something not seen for a long time.
The anticipation of Chairman Bernanke's 31 August speech should support prices in the coming week.
From a Technical POV, there is upside resistance around a number of Key chart marks, all the way up to 1,925 oz, the all-time high reached last September.
Should more favorable US economic indicators show an economy continuing to move forward, the chances of imminent stimulative action by the Fed could be reduced, this could as a negative for Gold.
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.