Today's volatile price action in the precious metals market have caused many of our Subscribers to send us messages with questions if these moves made us change our mind regarding our views about the next big move in gold, silver and mining stocks.

The answer is that we have not changed our mind since we've published our latest Premium Update. In other words, we still believe that gold, silver, and mining stocks are likely to move to their July lows.

Today's move in gold and silver was significant only if one looks at the intra-day action, but taking the closing prices into account - we see gold only 0.43% higher. Silver closed almost 2% higher, but it is still visibly below its declining resistance line. Mining stocks (HUI Index) moved about 1% lower today - below their short-term rising support line.

The volume was significant, but it was the case with gold, silver, and mining stocks, and the latter did not move up along with metals. Since both metals and corresponding equities usually provide a confirmation of each other's move, the technical implications of today's high volume are limited.

Besides, please note that gold moved up on significant volume right before local tops in June (7th, 18th). Additionally, please take a look at what gold did on June 29th - it moved lower about $20 lower and reversed only to plunge two days later. The volume on June 29th was similar to the one today.

If we believe that the above is no longer up-to-date, we will let you know.

Thank you.

Sincerely,
Przemyslaw Radomski