Just a quick note to let you know what we think about today’s price action. Today’s move lower in gold and today’s relative strength in silver and - most importantly - in mining stocks appears to be yet another repeat of the same pattern that we’ve been seeing for several days. Depending on today’s closing prices, the short-term outlook for gold could change, but it didn’t happen so far as strength seen in mining stocks balances the bearish implications of gold’s weak performance relative to the USD Index.

Depending on what instrument one used, the stop-loss level for gold might have been hit today (kitco.com reports today’s low at exactly $1,157, whereas low in the futures contracts was $1,159.40). Since it seems that the long position in gold remains to be justified from the risk to reward point of view, in the above case, re-opening the long positions with a lower stop-loss level ($1,146) also seems to be justified. In case the position remains intact, we still think that lowering the stop-loss level to $1,146 in gold is justified from the risk to reward point of view.

There are no changes in any other trading / investment / insurance positions.

Thank you.

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

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