Gold moved $13 higher in today’s pre-market trading, moving to about $1230 and silver moved once again to the $16 level as the USD Index took a dive and declined about 0.4. What are the implications?

This may seem surprising, given the parabolic nature of the moves in gold and silver, but the implications are next to none - at least at this time. The upper short-term resistance line that we drew on the gold chart in today’s alert that is based in intra-day lows is currently at about $1,230, so there was no breakout, but a move to it and silver simply moved back to this week’s high - again nothing to call home about so far.

The thing that is particularly important at this time is the situation in the USD Index. In today’s alert, we wrote that the cyclical turning point is upon us so today’s pre-market decline is likely to be reversed shortly and the same goes for the moves in the precious metals. So, while an upswing in metals may seem bullish, the turning point makes it bearish or - to be more conservative - rather irrelevant.

Confirmed breakout above $1,240 in gold (several resistance levels coincide there) could change the short-term (!) outlook to bullish, but it’s not the case at this time.

As always, we’ll keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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