The situation in the general stock market changed rapidly over the past week and the question now is if it does indeed have any implications on gold and silver. It certainly does but not necessarily on a day-to-day basis. The situation in USD and Euro Indices is also likely to affect prices of precious metals and this week's update includes our detailed explanations. We also cover the topic of recent excessive underperformance of mining stocks relative to gold and silver.

Today's report includes critical suggestions for both long-term Investors and short-term Speculators, and given today's pre-market action we suggest starting with the Summary section.

Additionally, we've included our comments on the most recent signal from one of our proprietary indicators and the top gold & silver junior rankings.

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Wednesday's decline in stocks and silver was quite volatile and caught the attention of many Gold and Silver Investors. Consequently, our update includes a discussion on the impact that this move can have on the whole precious metals sector.

What was less visible at the first sight, but at least just as important, was the intraday rally and an immediate decline in the price of gold that took place on significant volume. There are two theories - one that this was a very bearish shooting star candlestick and the second that it was a verification of the move above the Fibonacci 61.8% retracement level, which of course would be a bullish sign.

The implication of any of these moves could be quite profound given the current market juncture and present seasonal tendencies. Naturally today's Premium Update includes our comments on this topic and we provide a specific trading signal.

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This week the correlations between precious metals and other assets have turned upside down. We have examined this phenomenon closely and it turned out that it does provide us with additional insight at today's market juncture. In fact, this was one of the reasons based on which we adjusted our upside targets for the current rally.

The situation in the general stock market appears bearish at the first sight, however taking a broader perspective allows us to see what is really going on with stocks (and most important - what's not). Moreover, in today's Premium Update we take two different views on the financial sector and explain which of them should be viewed as short-term timing signal and which is just a long-term tendency indicator.

Finally, today's Premium Update includes the True Seasonal chart for gold that takes gold options' expiration into account. We use this chart to estimate the probable timing of the next turning point in metals and it confirms points made in other parts of the analysis thus further increasing their reliability.

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Message sent on May 23rd 2011

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Gold and silver have been moving in a rather tight trading range, which suggests that a bigger move in either direction is likely. The volume seen in the previous days has been very small and we've noticed an out-of-the-box pattern regarding that fact which provides additional insight to today's price analysis. This week's issue includes targets for both: gold and silver.

The USD Index appears to be the key to the current situation in the precious metals market and this week's developments were particularly interesting. Today's update includes detailed interpretation of the most recent events in both Euro and USD Indices.

Since our unique True Seasonals tool generated significant amount of positive feedback, we provided more seasonal charts this week - for silver and the HUI Index. What's particularly interesting, seasonal tendencies adjusted for derivatives expirations' appear to have played an important role so far in May. If this tendency continues, the following days could be particularly exciting.

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