The correlation between gold PMs and USD Index is becoming significant once again. No wonder - USD Index started to rally in the first half of May which is when gold, silver and mining stocks started to decline once again. Gold has been consolidating for 2 weeks now and we can say the same about the USD Index.

The key point here is that the USD Index is after a major breakout and now it's also likely close to ending its short-term consolidation (which could be easily called the continuation flag pattern) - the outlook is bullish which has bearish implications for the precious metals market.

On top of that, we have the seasonal tendency that suggests that it's time for the miners and metals to decline. Generally, the end of May / beginning of June used to be a good time of the year to either exit long positions or enter short ones.

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Market Alert sent on May 28th, 2013

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Gold bulls and gold bears are fighting for dominance on the market, while in the same time comments from Fed's chairman Ben Bernanke are pushing the US Dollar back and forth. Each side has its own grounds, so let's see how big is their footprint on the metals market.

Today's Premium Update includes our analysis of the following:

• Interaction between Bernanke's comments and recently reached cyclical turning point in US Dollar
• Head and shoulders pattern visible in the long-term Euro Index chart
• After several weeks of rally, stocks are taking a breather - general outlook for stocks
• Another failed attempt of breaking above the resistance level for Crude Oil
• Correlation changes between the gold, silver, US Dollar and general stock market
• Importance of this week's gold rally and decline - volume levels
• Gold to bonds ratio and similarities to the 1976 situation
• This week's developments and the real impact upon the outlook for the miners

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Market Alert sent on May 23rd, 2013

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Market Alert sent on May 22nd, 2013

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