Gold to break out soon.

Gold shows a trading pattern that we have seen a couple of times: a series of rising lows. The signal is for gold to break out to new highs between now and the first week of July. The breakout can occur at any time and is likely come soon. The dollar has stopped rising and is falling today, its bear market rally may be over.

Europe's eyes will now be riveted on the world cup and the coming financial crisis in Spain. Will Spain be able to roll over its debts? Will Italy, an aging team, be able to hold off Holland for one more tme?

The coming rise in gold prices signals a further series of troubles in European finances. This time, the dollar may not rise as much as when the Greek crisis broke, but gold should do a big bump.