As you have noticed, gold moved substantially higher today, because of the crash of the Malaysian Airlines Boeing 777 airplane. There were 295 souls on board and there were no survivors. Our thoughts and condolences go to passengers’ families.

The plane crashed on the Ukrainian side of the Russia - Ukraine border and it’s no wonder that the markets - especially gold - reacted visibly. The question is if this move higher change anything in the bearish outlook for the precious metals sector. In our opinion, it doesn’t. Today’s rally was not a reflection of a big change in traders’ attitude - it was simply reaction to unexpected news. These are the moves that at times simply have to happen and are one of the reasons for which we usually need to wait for confirmations of a given move. It seems that any breakout / that happened today should be treated seriously only if they are confirmed in the coming days.

Trading capital (our opinion): Short (full) position in gold, silver and mining stocks with the following stop-loss levels:

• Gold: $1,353
• Silver: $21.73
• GDX ETF: $28.30

Long-term capital (our opinion): No positions

Insurance capital (our opinion): Full position

Please note that a full position doesn’t mean using all of the capital for a given trade. You will find details on our thoughts on gold portfolio structuring in the Key Insights section on our website.

As always, we'll keep you - our subscribers - updated should our views on the market change. We will continue to send out Gold & Silver Trading Alerts on each trading day and we will send additional Alerts whenever appropriate.

The trading position presented above is the netted version of positions based on subjective signals (opinion) from your Editor, and the automated tools (SP Indicators and the upcoming self-similarity-based tool).

As a reminder, Gold & Silver Trading Alerts are posted before or on each trading day (we usually post them before the opening bell, but we don't promise doing that each day). If there's anything urgent, we will send you an additional small alert before posting the main one.

Thank you.

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

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