Briefly: In our opinion, full (150% of the regular size of the position) speculative short positions in gold, silver and mining stocks are justified from the risk/reward perspective at the moment of publishing this alert.

We sent you today’s alert yesterday and everything that we wrote in it remains up-to-date also today.

Still, we would like to very briefly discuss yesterday’s price action and today’s pre-market moves. The USD moved higher and gold moved lower - that’s clear. What’s not clear is the dynamics of these moves. In yesterday’s alert, we wrote that the way in which gold had reacted to the USD’s decline was very weak and we presented gold’s price in terms of the euro as proof. This is visible even more clearly in the case of yesterday’s trading and in the case of today’s pre-market moves. Gold almost refused to rally yesterday, and today gold is down about $4 (silver is a few cents above $17 at the moment of writing these words) as a response to a rather small move higher in the USD (yesterday, gold was $4 up based on a much bigger move lower in the USD). This is precisely the kind of reaction in gold that we want to see as a confirmation that gold is before a big decline - not a big rally.

All in all, the outlook remains bearish.

If you’d like to access the alert that we scheduled for today but posted and sent yesterday, you can do so using the following link:

USD’s Critical Breakdown and Its Implications for Gold

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts