In early trading yesterday, gold moved in a narrow range in anticipation of Ben Bernanke's testimony to Congress. On the release of the statement, the price initially fell $10, before finding support and powering higher, moving $36 higher to hit a high of 1620.
The market then fell back a little, closing at 1615 and this morning is consolidating yesterday's big gains. The market is currently trading around 1609.
We mentioned to our subscribers a couple of days ago that, due to the extreme oversold market and overwhelming pessimism towards gold, there was a reasonable chance of an upside surprise following Bernanke's testimony.
Even though nothing new was said, the fact that the market had priced in gold negative news to such an extent meant that a rally resulted anyway.
This powerful rally suggests that the correction is over, however we want to see follow through buying today to confirm the move.
Today's video looks at yesterday's price action in more detail and our price targets for this rally.
The market then fell back a little, closing at 1615 and this morning is consolidating yesterday's big gains. The market is currently trading around 1609.
We mentioned to our subscribers a couple of days ago that, due to the extreme oversold market and overwhelming pessimism towards gold, there was a reasonable chance of an upside surprise following Bernanke's testimony.
Even though nothing new was said, the fact that the market had priced in gold negative news to such an extent meant that a rally resulted anyway.
This powerful rally suggests that the correction is over, however we want to see follow through buying today to confirm the move.
Today's video looks at yesterday's price action in more detail and our price targets for this rally.