The precious metals sector is moving higher today, which is what we were expecting to see after multiple signs of extremely bearish sentiment last week. The encouraging fact is that the gold:UDN ratio (gold viewed from the non-USD perspective) didn't close the week below its declining long-term support line. In Friday's Premium Update we wrote that we expected the temporary breakdown to be invalidated and that was the case on the same day.

Of course, we expect to see a rally much greater than what we saw on Friday and today. All in all, what we wrote in Friday's Premium Update remains up-to-date.

Full speculative long positions are suggested for gold, silver, and mining stocks.

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

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 March, 2013 and we will send additional Market Alerts whenever appropriate. In other words, we have decided to keep you informed on a daily basis for another full month.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA