Gold prices look set to move even higher over the coming weeks, probably over $700 as gold continues the next step in its bull market.

Although technically, gold looks overbought, we should see gold prices moving over at least $692.50, (its previous high made at the end of February) if not over $700 in the coming weeks.

The RSI for gold stands near the top of its range at 67.60 which may be suggesting a down turn in gold prices could be due soon. However if one looks at the RSI compared to gold over the past few months, we can see that gold often defies the RSI indications and continues to move higher, trading at the top of the RSI range.

Similarly the STO is also at the top of its range at 86.53 – 83.39 and may suggest a drop in gold prices could be around the corner. But if one takes a glance back at how gold prices behave compared to the STO, we can notice that despite the STO being bearish, gold prices continue to surge upwards.

We believe that gold prices will move higher over the coming weeks, in spite of what the technical indications are. Gold should move to a new high for 2007, probably over $700 before moving temporarily moving back again, perhaps to the $680 level.

These are of course short term fluctuations and when one looks at the bigger picture, they seem somewhat insignificant, given the fact that we believe gold prices are moving much, much higher over the coming years.