The 1300 level that was once strong resistance now will become strong support. I think it is extremely unlikely we break lasts years high in the price of gold without retesting the 1300 level at least. The reason I say this is commercial money is increasing their shorts and it in the bearish level now.
The US dollar may still have a chance of rebounding which could put pressure on gold but would allow for the next up leg to be created. The mining stocks have been seeing nice increases, some more than others but more are still undervalued. Look at where they have been compared to last year when gold was at the same level. Big difference, of course the mining sector got a big over heated but you can see the room for growth in owning shares in this sector. I've been on a small buying spree of company's that are in the copper, zinc, silver and gold sector. If gold breaks 1400, I think 1500 won't be hard to make it to next.
The only thing that would make gold break out past last years high without having a pullback would be some black swan, perhaps having to do with north korea or something like that. Tough to say what will happen, good luck investing!
