China’s move on reserve requirement and the global central bank liquidity facility should give a power boost to gold, in our opinion. This really smells like the global Cen Banks are going all, and we mean ALL IN. In fact, a joint central bank/IMF facility to fund Europe wouldn’t even surprise us.
This could be the catalyst for a quick move up to resistance at $1,800 and new highs shortly thereafter. It’s important the $1806.60 high in the Feb12 futures is taken out in fairly short order to negate the formation of a potential H&S pattern. Always with a stop. Stay tuned.
(click here if chart is not observable)