Gold finished the day at $1616, closing in on the top of the “triangle” resistance at $1625. Resistance was $1550. Silver closed above its resistance at $27.50. We may be within days of breaking out of the summer doldrums. Should Bernanke even hint of QE3 next week, gold will be off to the races. The Cartel will have to back off and let gold blow off some steam and QE3 is the perfect excuse as the funds move back into gold.
Check out the following chart. Gold jumps over resistance to land above 1600. It looks like the support at 1550 held.
Wednesday I asked the question why Bernanke hasn’t offered up a dose of QE yet. One of our readers, Bonnie sent me the following article (that somehow I missed) from Seeking Alpha that addresses the same question. Thanks, Bonnie.
Will QE3 Be Announced In August? (seekingalpha.com)