The interest rates were indeed increased and markets reaction was not significant. The investors were less excited than when Donald Trump won the elections. Still, we saw a bearish confirmation in the form of silver's outperformance.

The most important thing is that the uncertainty regarding the Fed decision is now gone. The markets know what happened and what's to come. The key implication is that the major trends can now resume. In case of the precious metals market, the trend is down. Gold is moving lower and the breakdown below the 61.8% Fibonacci retracement level is now clearly confirmed.

It seems that now - with the tensions removed - being out of the short position is more risky (in terms of the risk of missing the trade) than being in it. The chance of a big slide in the coming days is too big to justify waiting for higher prices at this time. Consequently, we think that entering the short positions as outlined in today's previous alert are now justified from the risk to reward point of view - at the current prices. The stop loss orders and target prices also remain unchanged (as outlined in today's precious alert).

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

Thank you.

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

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