Gold price back above its 200 daily moving average – thank-you Mr Bernanke
Well it’s taken 5 or so months but finally the gold price has got back above its 200 daily moving average. The catalyst? Why our good friends at the Federal Reserve no less.
In the past couple of minutes the Fed released their minutes from their last meeting, and it was lines like this that got the bears running for cover:
Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery. Several members noted the benefits of accumulating further information that could help clarify the contours of the outlook for economic activity and inflation as well as the need for further policy action.
[emphasis ours]
Now, whilst this looks like more jaw-boning by the Fed to pump stocks higher in the hope that they never actually have to print more money, sooner rather than later they’ll bluff will be called and they will print.
As for gold, it is in no mood to hang around and find out just when the printing will come:
(click for sharper image)
If gold can hold above its 200 DMA into the weekend watch-out for some fireworks next week.
Related posts:
- Gold price falls to $1645 level – trading back below the 200 daily moving average
- Gold price falls back to its 150 daily moving average… again
- Gold price back above its 200 daily moving average… when priced in Pounds
- Silver back trading around its 200 daily moving average – still up 24% for the year
- Gold Price Update: 200 Daily Moving Average
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-back-above-its-200-daily-moving-average-thank-you-mr-bernanke-7720/
Posted by Thomas Paterson on Aug 22 2012. Filed under Gold News.
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