Gold reached fresh 7-year highs on Thursday, exceeding the 1611.41 peak set in early January as tensions between the U.S. and Iran reached their zenith. The yellow metal traded as high as 1623.74 and closed strong.

The gains also confirm the breach of the 61.8% retracement level of the entire decline off the all-time high at 1920.74 (2011) to the 1046.18 low (2015). Considerable confidence has been returned to the long-term uptrend as well as the rising number of projections that call not only for a retest of the all-time high, but move on to the $2,000 level.

Spot Gold Monthly Chart

Spot Gold Monthly Chart

The ability of gold to forge 7-year highs in the face of a slow down in the number of new coronavirus cases, a rising dollar, and rising stocks is a testament to the durability of this rally. Should the dollar and/or stocks correct, or the number of coronavirus cases jump unexpectedly, the bull market in gold could really accelerate.

Silver was consolidative on Thursday, unable to extend the recent gains. While the gold/silver ratio rebounded, the silver market still looks pretty good. Scope remains for a retest of the January high at 18.86.

Palladium saw its first lower close in 9 sessions, but price action was confined to Wednesday's range. The trend remains unquestionably bullish.

Platinum fell rather sharply, losing 2.5% and retracing much of the gains notched in the previous three sessions. Platinum managed to close above the 9- and 20-day SMAs, but a return to the consolidation band around 960 is a possibility. Solid chart support at 950.50/949.50 should remain protected.

The new all-time high for rhodium is $12,700.


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