The Consequences of Current Global Monetary Policy will be higher Prices for both Gold and Silver

Finally, we have a break to the upside in both gold and silver, something that many precious metals investors have been patiently waiting for, but expected to happen. The price of gold is now a tad away from breaching the $1700 an ounce level, after smashing through the key resistance levels at $1625 an ounce and $1650 an ounce.

As US Federal Reserve Chairman, Ben Bernanke, began his eagerly awaited speech at the annual symposium at Jackson Hole, Wyoming, the price of gold dropped sharply. After trading above $1660 an ounce last Friday, the price of spot gold suddenly dropped to an intra-day low of $1644 an ounce. Afterwards, the price suddenly reversed direction and surged higher to end the day, the week and the month at $1692.30 per ounce, the highest level since May of this year. The price of gold is now well above its 50 day Moving Average and is building strong support above its 200 day Moving Average currently set at just under $1650 an ounce.

David Levenstein