We promised to keep you updated on or after each trading day, so here we are. Basically, the precious metals prices didn't do much after we sent out yesterday's Market Alert and everything that we wrote in it remains up-to-date. 

Here's a quick link if you haven't read it yesterday:

December 19th, 2012 Market Alert

Yesterday, we emphasized the importance of the RSI based on the gold:XEU ratio, but actually there are also other analogous ratios representing gold priced in other currencies that have the same signal. RSI also flashed major buy signals in case of gold priced in the Canadian dollar, the Australian dollar, and the British pound. Gold priced in yen moved once again to the previously broken resistance line and seems to have once again verified it as support. The gold:UDN ratio, which is a weighted average of gold priced in currencies other than the USD has also moved to the previously broken resistance line and seems to have verified it as support.

Silver moved to its 250-day (50-week) moving average and if you take weekly candlestick chart into account, you will see that this was a very reliable resistance and support line in case of weekly closing prices. With two closes until the end of the week, it seems that the bottom was reached.

There is one more thing that we would like share with you today. The major news is that eBay is now making it much easier for people to purchase physical gold and silver:

eBay Makes A Big Bet On Gold And Silver Sales With New APMEX-Powered Bullion Vertical

This is a very positive and bullish factor for the long term as it will likely contribute to higher investment demand in the coming months.

All in all, we think it’s a good idea to keep the speculative long positions in gold, silver and mining stocks. Our short-term price targets are $1,720, $33.5, and $49 for gold, silver and GDX ETF, respectively. We suggest putting stop-loss orders at the following price levels:

• Gold: $1,655
• Silver: $30.40
• GDX ETF: $44.4

Naturally, we suggest keeping your long-term precious metals investments intact.

In case you missed yesterday's announcement - we have decided to continue sending you Market Alerts on a daily basis (on or after each trading day (with the exception of Fridays when Premium Updates are posted) at least until the end of JANUARY, 2013. In other words, after receiving very positive feedback from you (thank you) we extended the time for which we will continue to send you valuable information each day. As some of you suggested, we are also considering making this a part of our service.

As always, we'll keep you updated should our views on the market change - even if it means sending another message in several minutes.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA