Crude oil is approaching six year lows, the USD is stronger, and the Dow Jones is up 200 points… under normal circumstances, this would mean the precious complex would be trading lower.  All four are trading higher today though.  Gold is breaking out to the upside and hit twelve week highs today.  Since breaking through a long term down trendline dating back to October of 2012 two days ago, gold hasn’t looked back.  It is up for the third day in a row and its near term target is the 200 day moving average at $1,254.25.  Silver exploded through $17 today but has found heaving selling emerge at $17.20, the fifth point on a down trendline dating back to August of 2011.  This move higher for the precious metals seems to be largely technical as shorts have scrambled to cover positions.  It would be surprising to see a sustained move higher in the near term unless US equities roll over.

Keep an eye out for US Retail Sales m/m tomorrow, US Unemployment Claims on Thursday, and US CPI m/m on Friday.