Just a quick note to let you know that today's upswing in gold doesn't change the bearish outlook.

Based on today’s pre-market upswing, gold’s price move has become very symmetrical to the decline that created the left shoulder of the current significant head-and-shoulders pattern. As this pattern remains intact, the downside potential remains significant as well. The target based on this particular pattern is at about $1,580, so almost $150 below the current gold price. And yes, gold could move to this level within the next several days.

Also, if you’ve been wondering why gold moved higher - you will find the answer on the finance.yahoo.com homepage. “The case for $3000 gold” was the main topic for at least some time today. Gold making headlines is almost always a reason for gold to move higher in the very short term. Such moves are usually quick and temporary. In fact, they quite often take place at the end of a given upswing, when the investment public (that buys at the top) enters the market just because seeing a headline (and reading the article) like that.

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

Thank you.

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