Gold dipped slightly at the beginning of Ben Bernanke’s much-anticipated speech at Jackson Hole yesterday, then (along with Silver) powered higher in an impressive show of strength as Bernanke hit a hole-in-one for the markets with strong hints that the Federal Reserve will soon implement fresh, unconventional monetary policy stimulus. Combined with encouraging rumblings out of Europe, prior to next Thursday’s critical ECB meeting, the “perfect storm” appears to have formed for both Gold and Silver as predicted.
Gold gained $36 yesterday to close at $1,692 while Silver jumped $1.30 an ounce to $31.74. Both are five-month highs. The next major target for Gold is $1,730 – a level John has highlighted on his charts for a number of weeks. A challenge of last year’s all-time high of just over $1,900 an ounce has to be considered a strong possibility by year-end. More on Gold and Silver in our Week In Review And A Look Ahead which will be posted at approximately 5 pm Pacific time Sunday.
