from Gold Core:
Gold is hovering near its highest price level in four months due to safe haven demand on concerns about global economic growth and the unresolved euro debt crisis.
The possibility of Ben Bernanke and Mario Draghi announcing further money printing and monetary easing is also supporting gold. The US Fed chairman speaks this Friday and may or may not choose Friday to announce QE3. However with a Fed meeting set for September, it is unclear when further stimulus measures will be announced.
Should Bernanke fail to announce further QE Friday then we would expect sharp falls in stock markets and gold could again suffer some short term weakness.
Zero level interest rates and a QE3 announcement will be extremely bullish for the yellow metal.
Monday’s figures showing US consumer confidence fell in August to its lowest in 9 months was positive for gold as it shows that the US economy remains in bad shape and is deteriorating increasing the likelihood of the current policy response of choice – money printing.
The technical picture for Euro gold looks near perfect now.