Just a quick note to let you know our thoughts regarding today’s early decline in gold and the - quite volatile - comeback (at the moment of writing these words gold is at $1,254 after a drop to $1,242). This could be a sign that the next big decline in the precious metals sector is already underway, but it doesn’t have to be the case. By moving to $1,242 gold simply moved back to the declining blue support line (as seen on the short-term gold chart in today’s alert) - the upper border of the previous triangle pattern, so today’s decline could still be just a verification of the breakout and something that precedes a rally to $1,328 or so. We are not saying that the outlook for gold is bullish - we are saying that it’s not crystal clear that it has become extremely bearish, or at least bearish enough to justify getting back on the short side of this market.

If the situation changes as we see important bearish confirmations, we’ll keep you - our subscribers - updated.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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