Tuesday, September 4, 2012

the Gold Price Predictions of the Week: Gold to Pass $ 1700

Gold Rebounds just started. Gold steady for traded near a five month high on Monday, supported by the head of the Federal Reserve's indication last week that the U.S. central bank may take action to stimulate growth and also by evidence of a significant increase in investor demand.

Gold rally seems to be triggered by quantitative easing. It was the beginning of a boost up towards US$ 1700. Gold will come out of the movement ranging and will pass the US $ 1700 due to the central bank's monetary easing. Gold is trying to get past the psychological resistance level of $ 1700 and when it successfully penetrated there will be additional potential price increase of US $ 100.

Supply disruption and the stimulus expectations are the main factors driving of gold prices today and overall has pushed prices to a level that is high enough.

Since Bernanke's comments at Jackson Hole on Friday, most analysts see there are still opportunities of gold to penetrate the highest level in 2012. In addition there are many additional evidence that the interest of investors for gold has rise again both in terms of physical gold demand from the jewelry industry in particular, besides a fundamental factor still suggest rising gold prices and speculative actions of investors in ETF gold assets recently reported to reach the highest record this week.

But that is quite interesting, increase in the price of gold for euro more rapidly than the price of gold for the U.S. dollar, which gold prices in the euro has surpassed the highest level in 2012, and to within 2% of the highest price of gold last year's.

Looking ahead, traders will await the ECB monetary policy and commentary ECB President, Mario Draghi on Thursday. Estimated that the interest of investors for gold is enhanced if the ECB to take steps to increase the stimulus as well as the response of investors to the policy of the Fed.

Technically, it could be a bullish intra day penetration but requires consistent and daily closing above the US$ 1704 area to trigger further bullish momentum targeting the next resistance targets in US$ 1712 and US$ 1731. Nearest support visible in the area in US$ 1681, dropped again below the area is still an opportunity to correct short-range US$ 1675. But the weakness in this phase are still reasonable and can be considered to be temporary, as long as the price is still stuck above the US$ 1660 area, the bullish scenario is still more dominant.

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