Monday Open: $1,618.80
Weekly High: $1,673.50
Weekly Low: $1,613.30
Friday Close: $1,670.30

Finally, after a long summer of stagnant gold prices, this week marked a three month high and a steady rise in gold after U.S. Federal Reserve and European Central Bank leaders indicated the easing of monetary policy that gold bugs had been hoping for since the first quarter of the year. Though still hovering below $1,700, while last year around this time gold was hitting the historical highs of $1,900, this week provided a lot of the solid clues investors have been waiting for on the gold front.

Monday was not especially remarkable in that trading stayed fairly sideways a little above $1,600, but Tuesday began the upswing that continued throughout the rest of the week. This entire summer, the U.S., European and Chinese governments have been under close watch by gold investors, since any recession-fighting tactics like printing more paper money or changing interest rates would weaken their currencies, thus strengthening gold as a hedge fund.

On Tuesday, after a few weeks of speculation about the ECB bailing out European countries, Spain  added $5.4 million to its debt at lowered costs from the ECB, which gives hope that the ECB will buy government bonds to keep costs low. Inflation drives up the price of gold. China also started injecting more liquidity, or offering low-rate loans to member institutions, which bolsters confidence in gold.

Wednesday marked a big day because after months of expectant anticipation that Fed Chairman Ben Bernanke would ease monetary policy with little concrete evidence, he finally provided the strong signal that gold hopefuls were waiting for.

According to the minutes from the meeting, Bernake stated, “”Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” This is a more substantial indication of policy to come than has been seen in the past months.

Gold jumped nearly $40 after the news, primarily launching upwards on Thursday as China, the U.S. and the European Union all seemed to strongly allude to recession-era measures to keep their economies afloat, which translates into greater safety in gold. While Tuesday hit a two-month high, Thursday broke the record with the highest point in four months.

Santa Monica precious metals broker Marin Aleksov calls this trifecta of economic bailout the “perfect storm” for gold.

Some are still pessimistic that any actual policy change will occur, based on Bernanke’s past ambiguity, and Friday saw a slight slowing down of the gold frenzy of the week to level off around $1,670.00. The significance of this week is simply that gold seems to have emerged from the limbo state it’s been stuck in for months.

Adam Sarhan, CEO of Sarhan Capital, commented optimistically, “Gold has this week broken out of its well-defined, multimonth downward trendline. That resistance which kept gold in a range in the last several months should become a new level of support, suggesting gold is not going down but going higher.”

Many believe an unprecedented bursting through the $2,000 mark is just around the corner for this precious yellow metal.