Our stop-loss orders for gold ($1,655) and silver ($30.40) were hit just before the markets opened so at this time we no longer suggest being speculatively long gold or silver (in fact if you placed stop-loss orders at the suggested price levels you are already out of the market with your speculative gold and silver positions). The stop-loss order for mining stocks (GDX ETF) remains at $44.40 and based on pre-market prices it wasn't hit, so we suggest remaining long mining stocks. 

We placed the stop-loss orders close the previous price because there was a possibility that if the bottom was not yet reached, then the immediate-term could be quite volatile. 

We will probably send you another buy alert for gold and silver soon, because metals declined along with the USD Index and this makes precious metals extremely oversold from the non-USD perspective on a short- and medium-term basis. However, at this time we might see additional quick and volatile downswing and we don't want you to have to participate in it.

All in all, we think it’s a good idea to keep the speculative long positions in mining stocks. Our short-term price targets are $1,720, $33.5, and $49 for gold, silver and GDX ETF, respectively. We suggest having the stop-loss orders at the following price level:

GDX ETF: $44.4

Naturally, we suggest keeping your long-term precious metals investments intact.

As always, we'll keep you updated should our views on the market change - even if it means sending another message in several minutes.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA