Energy Rally Juices Gold

The currency story was slightly muddied Wednesday though, as the dollar firmed against the euro. One euro would recently buy $1.2956, down from $1.303 late Tuesday. Dollars were changing hands for 120.98 yen vs. 121.64 yen previously. Bullion prices tend to move in the opposite direction to those of the U.S. currency.

Turning to the technical analysis side of things, at least one chart watcher says gold is setting up for a big push ahead. Because gold settled above $653.50, it now has a chance to get all the way to $720 by the end of the second quarter, says Tony Raia, an analyst at Chicago's Linn Group.

In other parts of the precious metals complex, another market watcher sees good news for the platinum group metals.

"[President Bush's] pledge to increase spending on alternative fuel sources may speed up accessibility of fuel-cell technology, potentially boosting demand for platinum," notes James Moore, an analyst at TheBullionDesk.com.

Spot platinum prices were recently trading at $1,166 an ounce in London, down $2 from Tuesday, but up from an average of $1,029 last January.

Shares of platinum producers North American Palladium(PAL Quote) and Stillwater Mining(SWC Quote) were up 0.7% and 0.3%, respectively.

Elsewhere in the precious metals patch, RBC Capital Markets trimmed back its stock price target on Barrick Gold(ABX Quote) to $36 a share from $43. The shares rose 1.1% to $29.67.