Gold, silver and mining stocks moved higher yesterday and the move materialized on relatively low volume in case of gold and silver. It was rather average in case of mining stocks. The USD Index declined, but the decline was quite small, so actually the size of gold's move up was bullish - as a very short-term sign.

All in all, the situation seems to be developing as we have been expecting it to - we are seeing another bounce in the prices of precious metals and mining stocks but the medium-term downtrend remains in place. If we see the USD Index move temporarily lower but gold fails to rally or rallies on very low volume, we will have a final bearish confirmation and a signal to go short. We will keep you updated.

To summarize:

Trading – PR: No positions.

Long-term investments: A half position in gold, silver, platinum and mining stocks. As far as long-term mining stock selection is concerned, we suggest using our tools before making purchases: the Golden StockPicker and the Silver StockPicker

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 September, 2013 and we will send additional Market Alerts whenever appropriate.

As a reminder, Market Alerts are posted before or on each trading day (we usually post them before the opening bell, but we don't promise doing that each day). If there's anything urgent, we will send you an additional small alert before posting the main one.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA