Today the price of gold broke through its upper border of the trend channel, so I believe you might be wondering whether this is a start of the parabolic run in gold.

There are few points that suggest that the move was indeed a significant one: the similar action in silver and huge volume in both GLD and SLV ETF funds. Moreover, there were no topping sings today that I am looking for when timing a price peak - for instance juniors were not soaring on a daily basis.

On the other hand, the dollar is very close to its support level, and the general stock market may turn down any day now (moving up but didn't rise back above its resistance line). Additionally, the PM stocks (GDX ETF) have not broken above its resistance level. The volume in the PM stocks was rather average, so it is not a confirmation nor a strong divergence.

Therefore, the points made in the latest Premium Update are still relevant, and we would need to wait for a confirmation of the breakout in gold, to say that it is already beginning to rise parabolically. It may, but for now I doubt that this is THE FINAL RUN.

Summing up, if I was out of PMs with my long-term capital, I would enter now. As far as the short-term capital is concerned - for now - it seems that the top is very near, so it may be useful to wait several days/weeks before adding to your positions. Unfortunately, it's too early to say how low would gold/silver go after the local top is in, but once we have more information, I'll let you know (via Premium Updates / Market Alerts).

Sincerely,
Przemyslaw Radomski