The past 48 hours the stocks market has been on verge of a major meltdown in my opinion. The people with power who manipulate the markets are trying their hardest to hold prices up.
Yesterday we saw rumors about the Fed I the WSJ that they wanted to do more easing ASAP. That news could not have come at a better time as it saved the day/markets from more heavy selling. That news also helped prop gold bullion prices up.
Take a look at the 4 hour candle stick chart for a visual:
Now look at what Mario Draghi’s comments have done with spot gold prices in the daily chart below:
Gold is not nearing key resistance but the recent move up has been on nothing but rumors and comments… nothing set in stone. This makes me think sellers will continue to control gold prices as we near resistance.
When gold does breakout of this pattern I expect we see $2300 level reached. A great safe place to buy gold which I own some is through BullionVault and the even give you a FREE GRAM OF GOLD just for taking the 4 minutes to open up an account!
Get my Trade Alerts & Analysis Here: www.TheGoldAndOilGuy.com
Chris Vermeulen