GOLD Precious metals investors have a new best friend in Ben Bernanke after the Federal Reserve delivered on all their hopes and dreams by announcing another round of quantitative easing. Gold rallied more 70% after the first two rounds of QE and investors want more of the same. Gold traded a $1715 to $1,772 range. The scenario that we had predicted did not eventuate and we now turn neutral in gold in both the short and medium term. We will take some time to re-evaluate the situation for gold. We have always held a bullish view on the metal in the long term but had expected a short to medium term pullback before the rally. This pullback is now very unlikely given the developments overnight. All positions in gold have been closed and we are now sidelined as we gauge the reaction from the market. Rising tensions in the Middle East may also precipitate further rises. The risks have now changed dramatically from a downside move to a surge in prices to new record highs. Silver surged an impressive 4% and more than $2 above the lows of the day.
|3rd Support||2nd Support||1st Support||SPOT||1st Resistance||2nd Resistance||3rd Resistance|