Spot gold moved temporarily above the declining resistance line yesterday, but reversed soon after that and ended up moving back to the declining support line (based on the August and October lows) - there was no breakdown either.

Gold priced in the British pound corrected to the previously broken support created by the June low, without invalidating it.

Gold priced in the euro didn't move below its previous 2013 low - at least not yet.

Overall, the gold:UDN ratio moved temporarily below the rising support line based on the previous 2013 lows, but closed at it without a meaningful breakdown.

Yesterday, we discussed the intra-day reversal that we had seen throughout the precious metals sector. In case of silver, the intra-day move lower took the white metal to the rising long-term support line - based on the 2008 and 2013 lows - and there was no breakdown, the support held.

It's been some time since we previously commented on the XAU Index, but at this time, we have an important thing to report regarding this mining stock index. It reached its long-term support - the rising support line based on the 2000 and 2008 lows. That's a very important support level.

The HUI Index moved below it's previous 2013 low (and so did the HUI-to-gold ratio), but given the above, and the fact that it closed there only once, we don't view the breakdown as verified and meaningful.

The Euro Index moved above its 50% retracement based on the October - November decline. The next stop is the 61.8% Fibonacci retracement (136 level). This retracement currently intersects with the rising resistance line, so if the Euro Index gets there, it won't be likely to move higher.

Overall, there are some bearish signs for the precious metals market and some bullish ones - suggesting that a bigger correction is likely. With a long position, we risk a decline, which is in tune with the medium-term trend, and with a short position we would risk a meaningful rally based on the significant support levels that were just reached. When in doubt, stay out - is one of the more important sayings on Wall Street regarding the speculative capital, and we think that at this time the situation is too unclear to open a speculative position.

To summarize:

Trading – PR: No positions.

Long-term investments: 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 - 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.

Have a happy Thanksgiving holiday weekend!

Thank you.

Sincerely,
Przemyslaw Radomski, CFA