Yesterday we wrote that "[in 1976] there was a pullback in gold before it moved below the initial low. We could see this type of action shortly. If silver and mining stocks consolidate below their previous lows it will simply serve as a confirmation of the breakdown and an indication of further declines." We didn't have to wait long for the pullback to be seen. Gold, silver and mining stocks moved higher yesterday.

Silver's intra-day price action appears particularly encouraging as it moved almost to $20 (below its 2008 high) only to climb back up later. Is the decline over based on that day? Should you "back up the truck" with gold and silver yet? What about mining stocks?

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Market Alert sent on May 20th, 2013

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The currency war is hitting again, with Australia, New Zealand, Sweden and Israel joining the theater, as the smaller economies react to the quantitative easing of large economies. This week we also look at the latest World Gold Council Gold Demand Trends report showing that the gold market is driven by diverse global demand, and the appetite for owning gold jewelry, bars and coins continues to grow. But will the prices follow? In the latest Premium Update we focus on the following factors:

• Crude oil is closing to the major resistance line for the third time this year
• Gold to bonds ratio back below the 50% retracement level
• Gold's recent decline reveals its shape - the reversed parabola - how low and how fast can gold decline?
• No true underperformance of silver to gold has been seen recently - implications thereof going forward
• Trading plan for the coming weeks, detailed suggestions regarding trades in gold, silver and mining stocks - including stop-loss levels
• Long-term investment suggestions: stay in or stay out?

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Market Alert sent on May 16th, 2013

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The opening paragraphs of today's Market Alert:

Continuing our discussion regarding silver's and miners' performance relative to gold, it currently seems that Friday's strength was just a temporary phenomenon. The pattern didn't continue on Monday and Tuesday. In fact, silver moved close to it's Friday low, just like gold did. Miners are below that low.

The volume increased slightly yesterday along with lower prices, which is a small bearish confirmation. At the moment of writing these words, gold and silver have declined once again - $15.30 and 0.47, respectively. The decline, albeit small so far, seems to continue, just like the move higher in the USD Index does.

Speaking of the USD Index, it just closed above the March high and is quickly approaching its 2012 high (84.10) - at the moment of writing these words it's trading at 83.97. Another thing that's approaching is the next cyclical turning point - it's about a week away.

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