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The price of gold is now trading at an eight-month high.
Only one week ago, gold prices finally closed above $1,300 after multiple attempts to break through.
Today, gold has not only overtaken my first target of $1,310; it's testing my next gold price target of $1,320.
That has my gold recommendations rallying nicely too.
And we have an unlikely suspect to thank: the Fed.
A complete reversal by the U.S. Federal Reserve last week cemented the new bull in gold and gold stocks.
Not only did the Fed omit any indication about its next rate moves, a statement concerning the Fed's balance sheet says it will now need to maintain a larger portfolio than originally planned.
Of course, stock market investors cheered this news. But gold traders absolutely loved it, sending the metal to $1,322.
With my Q1 target already met, my next gold prediction is looking even more likely.
Let's break down what happened with gold prices last week and take a in-depth look at my next gold price target…
The Price of Gold Is in Bull Market Territory
Gold prices were already climbing early last week in anticipation of the Fed meeting outcome.
The precious metal rose steadily on Monday (Jan. 28) and Tuesday (Jan. 29), closing at $1,302 and then $1,311 respectively.
But of course, the really big move happened Wednesday (Jan. 30), as the Fed's post-meeting statement was released.
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Gold had been trending downward all morning from near $1,315 to bottom just below $1,310 by 2 p.m. Then it exploded higher within 45 minutes to $1,323 before settling the day at $1,319.
The DXY did nearly the exact opposite during that same time. Here's what the last five days have looked like:
On Thursday (Jan. 31) and Friday (Feb. 1) gold spent both days in retreat mode, digesting its recent gains as traders took profits.
That pulled gold back to close at $1,318 on Thursday as the DXY bounced from a low of 95.19 to 95.55.
On Friday, the DXY remained near that same level, and gold backed off on news from the U.S. Labor Department that a robust 304,000 jobs were created in January. Gold ended the week at $1,317.
That's perfectly positioning gold to hit my next target level…
Where Gold Prices Are Heading Now
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it's in gold, silver, oil, coal, or even potash.