Gold rallied in all currencies yesterday while the USD Index didn't do much and gold priced in USD moved higher.

Gold moved over $20 higher and since it's been moving consequently higher since last Thursday, one day of lower prices is actually quite probable today or in the following days. As long as gold doesn't move below our stop-loss level ($1,544), we will likely stick to the bullish outlook as the situation is still very oversold on a medium-term basis.

Moving on to today's Bernanke testimony on monetary policy, we don't expect to see any significant impact thereof on the precious metals market. The reason is that we doubt that any changes will be announced. Another reason is that what we have already mentioned above - the negative sentiment among investors and traders toward the precious metals market. There are limited amounts of investors who are willing to sell their gold and silver and it seems that this group is very small at current price levels - those who could have been shaken out of the market, already were - as indicated by high volume readings and extremely low values of the RSI indicator last week.

In other news, we just saw a buy signal for gold, silver and mining stocks from both of the SP Extreme Indicators, which extends the previous buy signal to March 13.

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