We are increasing the size of the current speculative short position in gold, silver and mining stocks to 150% size of the regular position.

As we’ve been expecting the situation changed very fast. The USD Index moved lower today (to 88.438 at the moment of writing these words), which is just a bit above the lowest of the critical support levels that we discussed in the recent alerts. As a reminder they are: 89.11, 88.71 and 88.26.

The USD was just about 0.18 higher than 88.26, which makes it likely that the bottom is in or that it’s just hours or minutes away.

The most important thing, however, is gold’s and silver’s reaction. They DECLINED. Really. Both metals should be soaring given another downswing in the USD Index and yet they both refused to rally at all. That’s a very strong bearish factor for the short term. If the PM market doesn’t want to react to USD’s weakness that’s likely coming to an end, then the PM market is very likely to react profoundly to USD’s strength, which seems to be just around the corner.

At the moment of writing these words gold is at about $1,356 and silver is at about $17.50 and it seems that moving to the previous size of the position (150% of the regular position size) is now justified.

As always, we will keep you - our subscribers - informed.

Thank you.

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

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