Like bowling pins

Records fell like bowling pins this week as February gold beat an uncharted path to a new high of $893.60 on Thursday, negating the potentially bearish shooting-star-like candlestick it made on Wednesday.

While gold appears to have hit the top of what may be a new, less steeply sloped channel (dotted green line), the yellow metal may have sufficient momentum to break through $900 and reach the top rail of the old blue channel from last August before pausing to relieve the overbought condition indicated by RSI.

The weekly chart of gold shows a potential blue channel with a top rail currently a little above $930.

Like gold, on Wednesday silver formed a candlestick resembling a potentially bearish shooting star, the high of the day matching the previous high of $16.27 on Nov. 7 to the cent. Proving that this was no coincidence, silver ignored the bearish omen and closed at $16.27 on Thursday.

Will silver form a bearish double top at this dotted red line in the sand, or will it reach the projected Fibonacci target of around $16.94? While in overbought territory, RSI is rising, as is the MACD histogram, so the short-term outlook is neutral to bullish.

Towards the end of a choppy week of trading on strong volume, GDX managed to close just above $52 on Thursday, less than a dollar short of its all-time intraday high (adjusted for dividends) of $52.95, made on Nov. 7. RSI is approaching overbought levels, and the MACD histogram is flat, so the possibility of a double top being made near that price is a real one.

The U.S. dollar index attempted to break through resistance at its 50-day MA on Wednesday but was pushed back down on Thursday. RSI was repelled at 50, and the MACD histogram appears to be turning back down, so this week's brief rally in the dollar could be over.