Gold price today – August 29, 2012

The gold price didn’t move much today. For the past couple of days, the prices are rather stable between the 1,650 US dollar and 1,675. If gold can hold the 1,650 support level, it would be a very good sign of strength.

After a spectacular week where gold and silver broke out of their narrowing range,  it seems to be time for a break. The short term consolidation is somehow logic, with the assumption that we are at the beginning of the breakout process.

 

It seems that Investors are waiting for decisions from the Central Banks in the US and Europe. The US Fed is having their meeting on Thursday and Friday, while the ECB is meeting at the end of next week. Expectations of analists are very diverse, in the sense that some are anticipating a new form of monetary stimulus by the Fed while others do not believe in an intervention at this point in time (yet). Regarding the ECB, we quote this from BullionVault: “It should be understood,” counters Draghi in a piece published in Die Zeit today, “that fulfilling our mandate sometimes requires us to go beyond standard monetary policy tools…this may at times require exceptional measures.”

On the King World News blog, trader Dan Norcini shared an interesting insight a couple of days ago. He told that the daily gold chart is starting to look bullish, while the weekly and monthly charts are not bullish yet. So we need some more time to get the breakout process rolling.

One thing is for sure: an increasing number of respected experts like Peter Schiff, David Morgan, Richard Russell and the like, are openly confirming the breakout has started. Yes we’ll need some work but the outlook is very positive and it could result in new all-time highs (in nominal terms) in the not so distant future.

 

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