According to Michael J. McFarlin, writer for Futures Magazine, “Gold has enjoyed a long bull-run with near daily headlines recently about record high prices. As administrators and regulators are attempting to ease fear in the marketplace, analysts are running to keep up with the yellow metal.”
Keith Springer, author of Facing Goliath: How to Triumph in the Dangerous Market Ahead, and president of Springer Financial Advisors based in Sacramento, CA says fear has had the greatest impact on gold prices recently.
“Gold is a place for people to go as the third currency and it’s also the place for fear. The cataclysmic possibility makes people go to gold, not the fact that we go into a slight recession, but the chance it could be worse than the last time is driving people there,” he says.
Springer went on to say traders should watch for continued weakness in the economy as well as any talks of a third round of quantitative easing coming from the Fed, especially paying attention to Fed Chairman Ben Bernanke’s Jackson Hole, Wyo. speech later this week. Springer says support is at $1,600 and resistance is at $1,950-$2,000 simply because those are psychological numbers.
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About Springer Financial Advisors: Keith Springer is author of Facing Goliath: How to Triumph in the Dangerous Market Ahead, a financial planner, a market technician, a financial writer, founder of Top Down Tactical™ and President and founder of Springer Financial Advisors in Sacramento CA, a SEC Registered Investment Advisor. He has developed a proprietary process for successfully building tax-efficient and retirement portfolios and has been providing specialty wealth management services for over 25 years.