Two reports were released this week that are bullish for gold. The World Gold Council’s Demand Trends report says gold demand wills stay high this year and that China is breathing down Indian’s neck to claim the title as the world’s largest consumer of the yellow metal. The U.S. Securities and Exchange Commission revealed the holdings of some of America’s largest hedge funds. The good news is that they still like gold. And another story this week—the gold rush is on—California here we come!

Silver is up over 6% for the week and Subscribers who followed our analysis took full advantage of this rally - with both long- and short-term capital. However, the recent rally took place on strong volume, which caused the volume for the SLV:GLD ratio to spike - in the past declines followed after such a development. In today's update, we explain if this time is really different. Meanwhile, gold and mining stocks reached resistance levels, so the question is should you exit your speculative positions. Naturally, this is one of the things what we comment on in this week's update.

The ironic fact this week is that part of a bearish head-and-shoulder's pattern in mining stocks appears to be a bullish reverse head-and-shoulders pattern with noteworthy target for the sector. In addition to explaining this phenomenon, we decided - as requested - to provide you with the True (!) Seasonal pattern for gold in March.

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Message sent on February 17th, 2011

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Message sent on February 14th, 2011

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Birds are falling dead out of the sky, a strange omen or a reminder of how risky and vulnerable the world is? This week we look at some of the major risks we face in 2011 and how they might affect the price of precious metals.

Has the euro finally broken down? What does the price of gold in Australian dollar tell us? What are the implications of the volume levels seen in the past few days in gold? These are just a few of the questions that we deal with in this week's Premium Update. Moreover, we found another crucial factor to be taken into account as far as the euro / gold relationship is concerned, and we covered an interesting signal coming from the platinum market.

We also reply to the question from one of our Subscribers, who asked about the implications of the fractal analysis of the gold market and if it's probable that gold would soon move below $1,000.

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The full version of today's analysis will be posted later today.

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