So far gold’s rally is an outside reversal to the upside on a daily basis, not weekly. The Weekly Bullish Reversal stands at 1336. Support lies at 1280-1272 for this week into next followed by 1240. Resistance starts at 1307 next week followed by 1331. Initial support will rise slightly to 1290.
We still see June and September as the key months ahead followed by next January. Keep in mind that a 3 year reaction from the 2011 high is 2014 but a 3 year from the highest annual closing is 2015.
It is looking more and more like we will see geopolitical on an international basis as well. These politicians on both sides are going to have a real problem when the economy in the US turns down. That is the only economy holding up the entire world right now. Once US consumers stop buying, the people will begin to rise up against government on a wide scale basis. Also keep in mind we have the US election in 2016 and there should be a sharp rise in third-party activity. We are also monitoring a rise in third-party activity everywhere including even in India. So there are a lot more political hot spots getting ready to bubble up to the surface.
