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Is Gold Worth $3,500

The recent issue in Syria has pushed Gold prices up. According to technical analyst Tom Fitzpatrick at Citigroup, gold may touch $3,500 an ounce. Now let me be clear, this is not Citigroup’s position on gold they have a much more conservative outlook on the precious metal.

According to Fitzpatrick, the current pattern of gold is similar to 1974 to 1976. If you are interested in the fundamentals, you need to pay attention to current events like the crisis in the middle east and the federal reserves position on monetary policy. QE tapering could bring gold prices down while conflicts in the middle east could send prices up.

If you are interested in the technicals, here is a few trends I spotted.

My view is that prices are approaching the outer band and may come down in the short run. What is your view? Do you agree with Tom Fitzpatrick's prediction?