Just a quick update as gold has been moving lower today along with the general stock market. Stocks have in fact moved below their short-term support lines, but that's not enough to make the situation on the general stock market bearish. Stock may have moved below the short-term support, but the long-term support holds. You can view this chart in the April 22nd 2010 Premium Update:

Clearly, the support provided by the long-term support line is stronger than the short-term one, so the medium-term picture still looks bullish.

Moving back to gold - neither mining stocks nor silver followed gold lower today, so we don't view gold's decline as a confirmed one. The bearish point is that gold moved below the rising short-term support line, however it did not move below the long-term ones and it's not below the 50-day moving average either.

Combining the above with points made in the latest Premium Update leads us to believe that we are right at or very close to the local bottom. Should that cease to be the case in our view, we will notify you immediately.

Thank you.

Sincerely,
Przemyslaw Radomski