Is the Fed taking a September taper off the table? That's certainly what gold bulls are hoping for.
After holding the major $1,352 level, gold finished the week with tremendous strength, trading to new swing highs. Although the metal was just short of $1,400, it closed nearly $20 higher on Friday, reaching $1,399.90. Gold then continued the run on Sunday night, trading to $1,407.
This support for gold comes as investors view the taper as less of a sure thing. After new home sales data on Friday turned out to be a big disappointment, traders and investors found gold very attractive, betting that the $85 billion a month in bond purchases by the Fed will likely continue through the end of 2013. Weekly data have been the major mover for the metal and the dollar, as the clock is ticking for the Fed to make a move on the ongoing stimulus.
(Read more: The hidden reason why the Fed will taper: Pro)
Major support this week will come in at $1,383 to $1,384.10 as the uptrend continues. A close below this band will likely signal a consolidation lower. Only a close below $1,352 will signal a failure.
So how high can gold go?
(Read more: Gold within striking distance of bull territory)
The major upside target on the week is $1,422. In fact, we expect to see this price within the next session.