Gold and silver have just reached their respective rising long-term support lines based on the 2008 and 2013 lows and a few other support levels. Given the above, the size of the current decline (over $100 in gold in the past few weeks) and the fact that we have not seen a bigger upswing in both metals recently, it seems that we could see at least a pause shortly.

The medium-term trend remains down, but the chance for a short-term upswing has just increased and we suggest taking profits off the table.

We will quite likely suggest getting back on the short side of the market shortly, but for now, it seems that the risk of a more visible move up is too big to keep the speculative short position open. We will wait for another great risk/reward moment and report to your accordingly (please note that it may emerge very soon, even tomorrow).

Consequently, we suggest closing the speculative short position that we had suggested opening yesterday when gold was close to $1,274 (it's $1,244 at the moment of writing this message).

To summarize:

Trading capital: No position.

Long-term capital: Half position in gold, silver, platinum and mining stocks.

As always, we'll keep you - our subscribers - 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) 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