Above is the daily chart of Gold (XAU). While Bernanke said that currently Fed had no plan for launching QE3.0, the public believed the stimulus program was quite likely. Gold price soared as a result.
Gold price has been within the the green flag for a few months. In general, this green area could be treated as a bullish flag which indicates further surge of gold price.
The flag broke few days ago. XAU surged and recorded new high. I tried to use fibonacci projection to predict resistance levels, and found that 1,613 should be a strong resistance. 100% level is at 1750, whether it can be reached depends on the progress of QE3.
Currently we can see that RSI and MACD are at high levels. Gold price would take a little rest before moving higher. There might be a little drop like that in March 2011. Support is at around 1540.
Normally if Gold is climbing, other commodities such as silver and platinum would follow as well. We can expect crazy rise of them.
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