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Gold tests first resistance; silver and platinum quiet

Commentaries & Views

Gold has been moving up the last couple of days and has reached the first resistance of $1,730 in the June futures. The pattern looks ready to break out out to the upside and may be reversing the recent pressure it has be under. Remember, gold has been consolidating with a lean to the downside since early April but held support.

If gold can break through the $1,730 level in the June futures, the next target is $1,775. The fact that gold has made higher lows for the last week adds momentum to a possible breakout. We remain long and will stay there until the pattern is violated to the downside.

Silver and platinum remain in almost identical patterns, with both looking like they are getting ready to make big moves. Based on our positions, we assume these moves to be higher. However, the pattern itself is based on confusion, which suggests that silver and platinum can go either way. Levels to watch include: silver, $15-$16, July futures; and platinum, $750-$850, July futures.

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