Greetings!, An interesting report surfaced on Bloomberg news today. They reported that central banks expanded their bullion reserves and hedge funds increased bets that gold will experience a rally for the first time in three weeks. Mexico, Russia and Turkey added about 44.8 metric tons to their reserves in March. This purchase amounts to approximately $2.4 billion worth of gold. International Monetary Fund data shows fund managers raised their net long positions by 2-1/2%. Although there is no certainty where the future price of gold will go it appears that the large players believe gold will be higher. This week's press conference and the following Q&A session shed light on the current stance of the Federal Reserve. Asked specifically if QE3 was still on the table Fed chairman Bernanke replied that it is a tool that remains at the ready to be used if necessary. This statement has been considered bullish for the precious metals markets by many analysts. Renewed concerns about the sovereign debt crisis in the E.U. - including a credit downgrading of Spain to a BBB rating - also fueled speculation that gold's pricing would begin to move back up. The best answer as to where we will see gold prices in the upcoming week can be seen as this long corrective fourth wave concludes. I anticipate a price rally above 1700, followed by one final leg down. This activity will culminate with a thrust above the resistance created in the triangle correction signaling a return to an impulse phase and a push to substantially higher prices in gold. As always, wish you good trading, Executive Producer | 
