Now at the beginning of the third consecutive week, gold and silver prices continue to climb. After trading to a low of $1215 per ounce during the week of May 5th, gold futures have moved roughly $45 higher, currently up $7.20 (+0.59%) and trading at $1260.80. Silver futures have also gained substantially over the last three weeks.

Recent action in gold indicates that there is solid price support at the recent low of $1215. On a technical basis, there are two major patterns identified that confirm this assumption and market model. The combination of these patterns together indicates a high probability that gold prices will move higher over the next few weeks.

After taking a short breather, U.S. equities regained favor today with the Dow Jones and Standard & Poor’s 500 closing fractionally higher on the day. Both the Dow and S&P 500 gained about a third of a percent in value, with the Dow Jones average closing up 56 points at 20,663, a net gain of +0.27%.

What do you get when political actions occur which result in steadfast denials from one camp and a lynch mob from the other? When these things happen, you get days like this.

Now in its second week, a remarkable rally in gold and silver pricing continues. This rally began with bargain-hunting and short covering; however, this recent leg is predominantly based upon a weakening U.S. dollar.

Although gains have been modest, both gold and silver have closed higher for the last four consecutive trading days. As of 3:30 Eastern Standard Time, gold is currently trading up $3.10 (0.24%), based on the June 2017 futures contract, at $1230.70.

In recent weeks, gold and silver pricing moved dramatically higher due to many factors combining to paint the global geopolitical environment as uncertain. Actions in North Korea, as well as Syria, became a primary focus of world leaders as these activities provided the real potential for further escalation and increased turmoil.

For the second day in a row, gold prices have closed higher on the day. Is it time to look for a potential bottom? More importantly, are gold prices in oversold territory? While it might be a little early to have a definitive answer as to whether gold prices have bottomed, we see the necessary technical indicators that would be present at a price point which is found in technical support.

“There's something happening here. What it is ain't exactly clear” - Steven Stills

Now for the third consecutive week, gold and silver prices continue to trade dramatically lower. As of 3 o’clock Eastern Standard Time, gold futures are trading at $1216.50, which is a net loss of $10.60 (-0.86%) on the day. Silver futures are also trading lower, currently at $16.10, down almost $0.16 (-0.97%).