Just a quick note to let you know our current thoughts on the market. In general, not much changed since our previous commentary was posted. The USD Index is trading sideways, either on a verge of breakout or about to start another wave down. At this point the former is more probable, as it has already moved above the declining trend channel and what we see now is a consolidation.

At the same time gold moved lower at first (Tuesday) and higher (Wednesday) after that. Is this one-day decline the correction that we've been expecting to see and that it is over? Not necessarily. The volume has been much higher during the decline than it was during the following upswing - and we would expect to see quite the opposite during a corrective move that signals further rallies. What we have seen in the past two days is in fact rather bearish. The same can be said about silver and mining stocks, which makes this analysis more meaningful.

We'll provide much more detailed analysis in tomorrow's Premium Update.

Thank you for using the Premium Service.

Sincerely,

Przemyslaw Radomski