Gold is holding above $1400, and it feels like prices are consolidating the recent moves.

The dollar is below its key 200-day MA. I see the potential for a small bear flag. If the dollar breaks lower, then we could see another jump in metals and miners.

Platinum could be forming a W-bottom. Closing above $825 would signal a rally to $865 – $885.


-US DOLLAR- The dollar may be forming a small bearish consolidation before its next leg lower. After breaking the 200-day MA, it makes sense to examine the January low. Breaking lower could give gold the juice it needs to test $1500.

-GOLD- The momentum thrust through $1365 was robust; prices stretched well above the moving averages. A brief consolidation is justified. Gold technically formed a swing high, but I wouldn’t get too worried unless prices close progressively beneath the 10-day EMA. If the dollar breaks lower, as I suspect, gold should get another boost.

-SILVER- Prices are consolidating but trying to hold the 10-day EMA. The moving averages converged at $14.95, that is now support.

-PLATINUM- I think platinum is working on a W-bottom similar to oil (see oil chart). Closing above $825 would promote an initial thrust to $865 – $885. Platinum is difficult to trade without a futures account. The platinum ETF (PPLT) tracks prices pretty well, but it’s relatively illiquid trading on average just 75,000 shares per day.

-GDX- Miners are back in the resistance zone (now support) surrounding $25.00. As long as this area holds, I’ll consider this a consolidation before heading higher. Closing decisively below $24.75 would recommend a more meaningful correction.

-GDXJ- Juniors continue to hold the trendline. However, the longer prices stay here, the more likely a breakdown becomes.

-WTIC- Oil completed the small W-bottom after testing support at $50.00. To extend the advance prices need to close above $60.00 and then $61.00.

Have a pleasant night.