US Dollar:

Just like the Dollar, gold metal has logically consolidated into a symmetrical triangle and is breaking out the upside. This chart of gold looks extremely bullish and the first target is the high set back in April of about 435.

Notice how gold seems to consolidate into symmetrical triangles prior to large price appreciations? This is likely the beginning of a large rally and a great time to load up on the metal. Remember, technical analysis shows us that symmetrical triangle breakouts tend to produce large movements in the direction of the breakout.

The first target is about 435, and the longer term target is about $500!!! A big move is upon us folks.

The next chart is essentially the same chart as above, but plotted on a logarithmic scale. The chart below is as pretty as a supermodel. Notice how the logarithmic scale shows us that the uptrend line was never broken and stayed intact during major pullbacks which occured over the last couple of years.

The chart also shows you why it is sometimes important to look at a stock or index using a logarithmic scale: For example, an uptrend line cannot be drawn connecting the lows on the linear chart above, but the logarithmic scale below allows us to do this.

Gold metal looks fantastic on a long term basis: The chart below shows us that gold has strong resistance near in the gold band region, but once this is traversed, a price target of $500 should be easy to hit. Currently, gold looks like it may be forming a bullish cup and handle.

Gold likely entered a Secular Bull Market when it broke the downtrend line and ended it's long 20 year Secular Bear Market. Remember, secular bull markets last about 10-20 years on average, which means gold will do well for years to come!

Silver Metal:

Logically, Silver looks good and has consolidated into a nice pattern after the technical breakdown in April. Silver has consolidated into an ascending triangle with clean resistance at about 7. A longer term price target would be about $8.5, however the gap between $7.5 and $8 will be hard to overcome on the first attempt.

Gold Stocks:

There are essentially two major palladium stocks, PAL and SWC. However, out of the two, I prefer the chart of SWC.

SWC has a well defined downtrend line that is on the verge of breaking to the upside. The first price target would be about $17.5 on a breakout.

However, the long term chart of SWC is what really stands out for me:

SWC has formed a beautiful symmetrical triangle and has a huge long term upside potential of about $40 and an intermediate upside potential of about $24.

Commodities:

The CRB is a composite of 17 commodities and is on the verge of breaking out to the upside, resistance is at 285. This chart bodes well for stocks which are commodity based such as precious metals, and utility stocks.

The big picture chart of the CRB shows us that commodities entered a long term secular bull market in late 2003 when the downtrend line was broken. Currently, the CRB is flirting with resistance near 285, however the next target is about 335!!!

This is not good for the world economy in the long term and inflation has to be just down the road for the US Economy. When the price of commodities goes up, the price of everything logically has to go up as well because everything is made up of raw materials. In the long term, I can't see how inflation cannot enter the US Market in a big way.

Copper metal looks wildly bullish as it has broken out of a symmetrical triangle and is currently at resistance near $140. Copper stocks look good as well and my favorites are PD (which should hit $100 easily), FCX, PCU, WLV, RTP, MAD - well....in reality they're all good!

Of course, the king commodity of them all is crude oil. Crude oil has been on a tear, but is overbought in he short term and I would not be surprised if it pulls back here. However, oil is in a strong uptrend that will likely last for some time, a pullback will likely be temporary.

The long term chart of oil is one scary chart: Based on this chart, I think $60+ could be in store for the future. However, this is a long term chart and pullbacks to the dotted lines could occur.

The long term uptrend line is just over $30, so it could take a long time for oil to reach $60 + if a pullback occurs.

Realize that oil is in a long term uptrend as long as the uptrend line stays intact!