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Bullish on Gold

Posted: 09/04/2012 - 7:10 am

The last three weeks changed the technical game for gold. After a base that lasted nearly 3 months, the metal seems to be breaking out on heavy volume. While we would keep a very close eye to what the ECB will have to say on Thursday given that a decisive break has yet to take place (referring to the red trendline), experience says that a much bigger move is shaping up. It could happen after a pull back but the odds for a run up are high.

We are buyers especially on pull backs to the circle zone (roughly 1600-1650) and would eye an initial target of 1750 (probably higher from thereon).

We maintain a clear bullish bias at this point while keeping a keen eye on the actions of the major central banks of the world. The market seems to be anticipating further easing – expectations of QE3 by the Fed and bond buying by the ECB are running high – and only a disappointment would reverse our bullish bias.

Hold on to your COINS…

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