Silver in the pre-market today climbed to new bull market highs at $34.52, while gold prices popped above a key 11-week resistance line off of its December 7 high at $1,431.70.

This bodes well for higher prices that propel gold -- and the SPDR Gold Share (GLD) -- to new highs in the upcoming hours/days. Meanwhile, silver and the iShares Silver Trust ETF (SLV) point towards upside continuation towards a confrontation with the upper trendline of its multi-month up-slanted price channel, now at $35.30 in spot silver. Only a decline that breaks $32.40/30 will begin to compromise the near term bullish scenario.

Also shown on the chart is the euro/dollar, which, although perched right off of its recent high at 1.3860, acts tired technically. However, it otherwise remains the beneficiary of a relatively weak U.S. dollar and strong German fundamentals, and barring a break of 1.3710, the uptrend should remain intact and head for 1.4000 next

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.