by Matthew Weller, Gold Silver Worlds:
Today’s “larger-than-expected” QE program from the ECB will no doubt influence markets for years to come, but one of the most obvious immediate impacts has been the strength in gold. The yellow metal tends to attract flows as a store of value in times of central bank profligacy, and the ECB’s latest announcement definitely qualifies.
Last week, we highlighted a clear inverted Head-and-Shoulders pattern on Gold (see “Could This Bullish Technical Pattern Take Gold above $1300?” below for more), concluding that “…the measured move target of the inverted H&S pattern comes in all the way up at $1340, so gold rallies are still favored as we move through the rest of the Q1 as long as the yellow metal can hold above its 200-day MA at $1250.” After the recent rally though, it’s starting to look like the first quarter timeline for gold to reach its target at $1340 may be too conservative.
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