Gold Prices for the week of August 27, 2012, Technical

The gold markets had an outstanding week of the last five sessions as we finally broke above the $1640 level. This is an area that we have been watching lately in order to break out and go much higher. It now looks as if there is a massive support zone between $1500 and $1600. Because of this, we think that we are going to begin another leg up in the gold markets right now.

Looking forward, we see this contract moving much higher, perhaps as high as $1800 in the short term. Having said that, it really wouldn’t surprise us to see gold eventually hit $2000. On a break of this week’s candle to the upside, we would be more than willing to add to our already long position. As for selling, it isn’t going to happen.

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