It was an historic week for Gold as the yellow metal, driven by U.S. and euro zone debt concerns and an overall “Perfect Storm” of factors, breached $1,700 an ounce and then briefly shot past $1,800 before pulling back Thursday and Friday to close at $1,746. That was a gain of 4.9% for the week.
So where to from here for Gold? It seems highly probable at this point that Gold will challenge the $2,000 level before year-end based on fundamental and technical considerations. Over the immediate and short-term, however, it could test support slightly below $1,700. Gold got a little ahead of itself early last week and some consolidation appears to have started. The “big picture”, though, remains incredibly bullish. John’s chart shows a new Fibonacci target of $1,938.
