Impressive rally in gold this week takes out key resistance levels and potentially a very positive weekly close. At the time of this writing June gold is trading $1,783! The next key level on the way up is $1,788. A close above $1,788 will encourage the gold bulls and likely drive this rally towards the $1,820-$1,825 range. I’m confident that gold has bottomed and that the rally will continue and likely spend some time consolidating in the $1,820 to $1,850 range.
The US dollar has been trending lower for weeks now and that obviously helps support gold prices, however, it wasn’t until the dollar dropped below .9200 that gold was able to breakout and close above $1,760. So, these are two key levels that you must pay attention to. Gold must hold above $1,760 and the dollar needs to stay below .9200.
Platinum has a base in the $1,150 to $1,155 range. The trend is sideways to up. A close above $1,200 in the July platinum is needed to rekindle the rally back towards $1,250. The next test of $1,250 should quickly carry the rally to $1,300.