Just a quick update as things are moving quite fast in the PMs.

In today’s regular Gold & Silver Trading Alert, I warned you that we might see a turnaround today or tomorrow, and that it might be preceded by even more immediate-term strength. I also wrote that it would not be a game-changer, but rather something in tune with what happened in 2012 right before the end of the lengthy medium-term consolidation that preceded the epic slide in the precious metals market. And, well, that’s what we see.

Quoting:

Based on today’s pre-market upswing, gold might reach its declining medium-term resistance line (~1,860) any hour now, which might seem like a very bullish development until one considers the following:

1. Based on the self-similarity to 2012, that’s exactly what gold “should” do right before topping and sliding.

2. This move would make the size of the current rally practically identical to the rally from late 2020 to early 2021, which was followed by a sharp slide.

3. We have a short-term triangle-vertex-based reversal in the junior miners early this week, so we would likely see some kind of reversal anyway, and since the current move is up, we’re likely to see a top shortly.

At the moment of writing these words, gold’s intraday high is $1,867.50 – right at the intersection of three resistance lines and the triangle-vertex-based reversal.

At the same time, the size of the recent upswing is almost identical to the size of the rally that preceded the early-2021 top. Consequently, it’s highly likely that what we see right now is the final reversal that we’ve been waiting for.

Consequently, the medium- and short-term outlooks for the precious metals market remain bearish.

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

Thank you.

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