Gold price touches $1777 on the back of QE to infinity
Back at the start of September when the gold price was trading below $1700 and before the Fed decided to appear all panicky looking and announce infinite amounts of money printing we wrote:
It would be fair to say that the rally in the last couple of weeks seems to have caught investors napping and a run into $1700 territory this week is certainly on the cards. The next real challenge for the gold price will be around the $1777 level so we’ve got plenty of run left in this price move before any stiff resistance should be met.
Then last week we said:
So where next for gold? As we talked about on tuesday we’re now back in the up-trend channel that started some 4 years ago, and that has the potential resistance price now well in the $2000s. But on the more short term there really doesn’t seem to be much stopping gold until it hits the $1777 level, which might take a couple of goes to break when it does get there, and that might be as soon as next week.
Well here we are just a week later and gold this morning touched $1777. With the only real question left being just how much of resistance will it prove to be now that the Federal Reserve has decided to print infinite amounts of new money. Our guess is that it probably will dispatch of $1777 pretty quickly as people get the joke and the printing will simply never end.
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Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-touches-1777-on-the-back-of-qe-to-infinity-7909/