Silver and platinum rallied and you might be wondering if this changes the overall situation on the precious metals market.

Not necessarily. These rallies are quite in tune with what we've seen at the beginning of July - the situation didn't become bullish back then (metals declined in the following weeks) and the same could be the case this time. In early July platinum and silver rallied sharply: platinum moved more or less to the same level that it reached yesterday, and silver is a bit higher right now. In early July stock market formed a local top and it likely is at a local top right now as well, as stocks reached a major resistance level after a rally with no significant corrections. As a reminder, S&P 500 is at its 2012 high and the SPY ETF is at the 2007 high, which is also its all-time high.

In the latest Premium Update we wrote that "if SLV ETF moves through the $28 level and verifies the move, the situation will become very bullish". SLV ETF closed at $27.95 on Monday, so we don't really have the very bullish indications upon us.

Meanwhile, the case for the USD Index remains bullish for the medium term and the impact thereof on the precious metals market remains bearish.

Consequently, although much happened on silver and platinum markets lately, nothing changed yet. It seems that being out of the precious metals with most of one's long-term capital is a good idea. We don't suggest any open speculative positions at this point.

Thank you.

Sincerely,
Przemyslaw Radomski