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In the gold chart below, prices rebounded from the prior weeks bullish candlestick. The market ended the week on a very bullish note, from a technical perspective higher prices next week are expected:
Meanwhile, silver showed surprising strength this week. The chart below shows a very bullish weekly candlestick for the metal. Silver appears capable of making another assault upon the recent market peak:
The XAU has found continued strength at the 50 period moving average in the daily chart. In the weekly chart below, gold stocks posted another slightly bullish candlestick:
All three of the major indices have been consolidating for about 3 months. However, the Dow Jones managed to record an impressive break-out above the consolidation level two weeks ago and remained above 11,000 this week. The S&P and Nasdaq stayed range bound. Ideally the Nasdaq and S&P will confirm the Dow Jones break-out next week. If not, the Dow break-out may turn out to be false. Guru
Predictions There were far fewer Gold Guru's willing to share their forecasts for precious metal this week, however, two did stand out: Paul van Eeden noted: “…my belief is that the gold price is going higher and so I am not concerned. If I think that we will see $1000 an ounce in the next few years it really does not matter to me what the gold price is next week, or next month.” Also, Commonwealth Bank issued a forecast indicating that gold could reach as high as $675 over the next two years. Bottom Line The Gold Guru Award of The Week Award, goes to Paul van Eeden for his bold $1,000 gold target. When we take the average of our intermediate-term pundit estimates for gold we find a single price target of, $838 an increase of $96 from last weeks consensus of $742. ($1,000 + $675) / 2 = $838 We'll be watching to see if silver leads gold and precious metals stocks higher next week and if silver can eclipse its previous high point. Thanks for reading.
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