Spot Gold (XAUUSD) : 1500 then 1520-530 thanks to Bernanke
Yet another new high for gold, that the 1500 level could be ht in this week goes without saying, with further technical resistance between 1520 and 1530
• Goldman Sachs chief US economist was quoted last week as saying he does not expect the Fed to tighten interest rates in 2011, and possibly not until well in to 2012. Music to the ears of gold bugs…and a travesty for nearly everyone else.
• We view 1492 then 1500 or as a valid short term targets for Gold, with first decent support at around 1474.
• Gold would need to pullback and take out 1474 quickly if a new high is to wait, and even then it seems any weakness will be very short lived thanks to the insanely large numbers of the QE2 program, and to some extent similar poor policy from the British and Japanese.