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Gold to Hit Key Levels

268 views  2012-10-19 03:46   Tagsgold  Federal  monetary  stimulus 
According to Sasha Cekerevac, contributor to Profit Confidential, the recent Federal Reserve policy meeting ended in a somewhat neutral outcome for investors interested in gold bullion, as had hoped for additional monetary stimulus to be enacted. However, Cekerevac thinks that from recent moves in the price of gold, there are signs that there are increasingly more buyers for gold bullion than there are sellers, and investors should watch for some key levels that gold bullion will soon hit.

In the article “Key Price Levels to Watch for in Gold Bullion,” Cekerevac notes that the economic situation continues to deteriorate worldwide.

Cekerevac believes that the data will continue to be weak, and additional monetary stimulus from several of the world’s central banks will come shortly: “This should drive gold bullion prices higher near the end of the year.”

Cekerevac points to recent comments by Eric Rosengren, who is the Federal Reserve Bank of Boston President.

“He commented that the central bank should enact open-ended quantitative easing,” says Cekerevac. “He also suggested the Federal Reserve should boost this monetary stimulus program by a substantial magnitude.”

There are several crucial levels for investors in gold bullion to keep an eye on, according to Cekerevac.

“One should note the 38.2% retracement level at approximately $1,635, which has been both support and resistance for gold bullion,” Cekerevac states. “Naturally the 200-day moving average in gold bullion will also serve as resistance.”

Cekerevac believes that once these levels have been breached, the next level to watch will be $1,700, followed by a re-test of the $1,800 area.

“These moves will most likely coincide with news that the Federal Reserve has enacted additional monetary stimulus,” says Cekerevac.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

 

 

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