Has anyone noticed that the Gold Price Chart has almost fully formed a very bullish Cup and Handle Formation over the last 7-8 months?
What this Technical Move in the price is waiting for is a Fundamental Event.
This will come in form of the Spanish Govt accepting an EU bailout towards the end of November when all their regional elections are completed.
This will give Mr Draghi the mandate to activate a Multi Billion Euro Round of Money Printing in order to begin purchasing Spanish Bonds on the secondary bond market to bring down their yields. This will compliment the US Federal Reserve's Open Ended QEIII which was activated last month of $40Billion of Money printing which is ongoing and is expected to continues well into late 2014.
Bank of Japan announced a $200Billion Quantitative Easing, as well as the Bank of England continually printing $45Billion on a month basis.
When you have the 5 largest economies in the world all printing money, price of gold is set to surge.
Once this handle is fully formed and this fundamental event occurs, we will break well above the $2000/Oz before Christmas 2012.
It is going to be an incredible time for gold bullion and gold miners on the ASX.
