Gold and Silver have had an up and down couple of weeks. A small pullback followed by a surge in price has moved Gold to $1440-$1445 range while Silver is busting 30+ year new highs at $38.00. Some of this price action is due to the continued decline/weakening of the dollar the rest is due to predominate buyers in the market place. Right after the twin disasters in Japan a lot of people were fleeing all "risk" asset classes and moving into Dollars, however since that time and given the continued problems in the Middle East there has been strong demand for commodities. I think the price action of Oil in the $105-106 range after having fallen below $100 for a few days is not so much as "global concern over supply disruptions caused by Middle East unrest" as much as speculators betting that things are going to get worse before they get better.
If Gold can build a base above $1440 I think we will see a chance for a move to $1500. Normally, Gold would decrease in price during the summer months, however over the past several years that has not been the case and I think we will see another summer trading season where Gold will build a base and move upward some (unless all hell breaks lose/falls apart, in which case I think we could see Gold reach for $1600-$1750 fairly easily. Silver should see a pullback as it reaches here above $38 and moves towards $39. I would not expect more than a 2-3% pull back ($0.75 - $1.25) however I also think that there is a high likely hood that we will see $42.00 in the mid-term (12-24 weeks).
Mother