Another 6.6M American workers filed for unemployment benefits, but the Fed was ready to counter this news with something positive - new huge stimulus (2.3T) was just announced.

This news triggered a move higher in stocks futures, gold, silver, and it triggered a move lower in the USD Index. How much does it change regarding outlook, and does it invalidate the analogy to what happened in 2008?

In short, it doesn't invalidate the 2008 - 2020 analogy. Back then, gold's final top were actually three intraday tops in a row. The final of these intraday highs was the highest and it was this day, when gold actually started its plunge. This could very well happen also today, also in case of the stock market.

Please note that during the February - March decline, stocks plunged right after more and more measures were announced to counter the negative effect of the Covid-19 outbreak. This could take place also this time.

While it seems that we will see higher prices of mining stocks early during the day (both gold and silver might even temporarily exceed their previous April highs), it's far from certain that they would also close higher. Both: GDX and GDXJ are likely to move to their late-March highs (when we entered the short positions), but it seems that they won't move far above these levels, or that such a move would be sustainable.

As always, we'll keep you - our subscribers - informed.

Thank you.

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