Over the last five trading days, gold has shot up nearly $60, taking out the 200 day moving average, trendline resistance, and the previous eight month high.  It may have finally met its match at the psychological resistance level of $1,200 though.  It has failed to break through $1,200 multiple times over the last two trading days and it is now a double top of resistance.  After such an impressive run up and with Asia largely absent until February 15th for the Chinese New Year, it would not be surprising to see gold come off a bit.  This move would be accelerated if equities can stage a recovery as well.  Besides the absence of Chinese physical demand this week, price sensitive Indian consumers have put on the brakes for buying metal at these higher prices too.

Silver has piggy backed off gold’s ascension lately and made a clean break above the $15 area yesterday.  From a purely technical perspective though, it hasn’t performed as strongly as its yellow counterpart.  While gold reached an eight month high this week, silver hasn’t even reached its four month high.  And should silver move up, it will find heavy selling at $16, a key area of consolidation from back in October.  As the more industrial metal, silver may have a tougher road ahead with any negative headlines relating to world economic growth.