There was some major movement last week in gold prices based upon a combination of news from Draghi at the ECB about what could prove to be an almost unlimited bond buying program designed to preserve the euro along with expected stimulus plans from the fed.
There is widespread thought amongst commodity traders that the yellow metal is poised for more positive activity in the coming weeks after closing out a third consecutive week of gains.
Spencer Kelly, MD of Trading at Strategic Global Investments in Chicago believes that the sky is the limit - "It's clear to me that the Fed simply have to announce another stimulus plan and this will drive gold prices higher not to mention lowering the value of the U.S. dollar."
He goes on to say "Wednesday and Thursday of this week will see another meeting of the Federal Open Market Committee and it is highly likely that Ben Bernanke will announce more quantitative easing especially in light of the August jobs report which was lower than expected. This could drive gold prices past $1800 and that means there are still big profits to be made."
Spencer Kelly has been trading commodity options for over two decades and is well known for both his succesful trading record and his writing on trading commodity options for profit.
Strategic Global Investments is at the forefront of commodity and forex trading and provides trading services and advice to clients in over 70 countries from our head office in Chicago. Our offshore division is based in San Jose, Costa Rica. Visit http://www.sgitraders.com/ for more information or to open a trading account.
Disclosure: Both Spencer Kelly and Strategic Global Investments are long on various Gold options.
