Today gold, silver and mining stocks moved lower after having reached targets mentioned previously ($1,340 for gold and $23 for silver), however, main reason for sending this message to you comes from the very recent USD Index action. In our latest Premium Update we wrote the following: "The target level for the current decline is close to 77 and a pullback/consolidation is probable once this level has been reached." Further confirmation comes from Euro Index which is now close to 140 level. We see probability that the local top is in at 70%.

This part of information is dedicated to those who decided to bet on higher prices recently. This short-term move up has ended as expected (only slightly higher to be precise), therefore, it seems justified from the risk/reward ratio to close one's speculative long positions at this point.

The time is the key factor here, so are sending this message as soon as possible - without waiting for the daily close. We will be able to tell you more about downside targets for this consolidation after the markets close today - of course we will include appropriate comments in tomorrow's Premium Update.

In no way should the above comments regarding temporary consolidation make you consider selling your long-term precious metals holdings - we remain bullish on the metals here and we believe one should hold them regardless of the possibility of the short-term correction.

We will keep you updated and let you know if anything changes.

Thank you.

Sincerely, Przemyslaw Radomski