A few charts to describe the importance of yesterday's action in the gold and silver pits.

Regards - VHF

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Gold was the highlight yesterday. Seasonal influences are positive in the month of May. Gold broke above its previous all time high at $1,226.40. Long term technical target on gold has been $1,300 U.S. per ounce. A second technical target based on the breakout yesterday above a six month trading range is $1,440 U.S. per ounce.

Silver also broke above resistance and is testing its next resistance level at $19.45.

Gold equity ETFs on both sides of the border broke above resistance levels.

Strength in gold ETFs was triggered by positive technical action in key gold stocks. Newmont broke resistance on higher than average volume.