In today’s regular Gold & Silver Trading Alert, we promised to send you an additional note before the end of the session. It’s the final hour of this week’s trading, and we deliver.

In short, in light of today’s events we are leaving the size of the current trading position intact. In other words, we are not making any changes.

The platinum price is not back below the 2016 low, so the outlook didn’t become more bearish, but at the same time we saw something interesting in case of the USD Index and its link with the precious metals sector. Namely, today the USD Index moved lower, but the PMs are not visibly higher. This is important, because it confirms our analysis from today’s regular Alert. The precious metals investors and traders are likely not reacting to USD’s movement because they don’t view the current upswing as anything groundbreaking. The USDX remains below the previous highs and it might appear (in those investors’ and traders’ eyes) ready to decline once again. Just as the preceding rally was not exciting, today’s decline also appears to be “normal” and not worth acting upon.

The above means that supposedly bullish implications of the fact that gold had rallied along with USD, are not so bullish after all. If they were, gold should have responded to today’s weakness in the USDX with a visible rally, and it definitely didn’t.

Consequently, we are keeping our positions unchanged as the outlook remains very bearish for the following weeks.

Thank you.

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

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts