The precious metals are moving modestly higher once again today - at least at the moment of writing these words (gold at $1,652) and we are as bullish today as we were yesterday and on Friday. Consequently, what we wrote in the latest Premium Update remains up-to-date.

It's the first half of January, 2013 and at this time of the year precious metals have traditionally rallied. The odds are that the "seasonal wave" will help gold and silver move higher. In fact, the true seasonal tendencies will remain favorable for the precious metals market until the third week of February, which leaves plenty of space for a rally.

As we indicated in yesterday's Market Alert, the USD Index invalidated its short-term breakout and the short-term outlook is bearish - which is bullish for gold, silver, and mining stocks.

Silver remains at its strong, long-term support line and the same can be said about gold from the non-USD perspective - with strong support below today's prices and bullish factors in place, a rally seems to be in the cards.

Just as we indicated on Friday, at this time half of the long position is suggested for gold and silver and a full long position is suggested for mining stocks.

We will probably see a buy signal in the SP Indicators shortly, which will make us suggest doubling the long position in gold and silver, but that's not yet the case.

Naturally, we suggest remaining in the precious metals market with your long-term investments.

For new subscribers - please refer to our gold and silver portfolio page for more details on the meaning of the above comments.

As always, we'll keep you updated should our views on the market change. We will continue to send out Market Alerts on a daily basis (except when Premium Updates are posted) at least until the end of January, 2013 and we will send additional Market Alerts whenever appropriate.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA