[Today's free analysis is what we posted to subscribers – along with profit-take levels several hours ago.]
Today’s analysis will be quick as there’s very little new for me to say.
After the sudden CPI-release-based rally, gold moved back down. Some of that decline took place during yesterday’s session, and some followed in the overnight trading. Right now, the price is pretty much where it was 24 hours ago and lower than it was 48 hours ago.
The same goes for silver.
This means that everything that I wrote yesterday, and in the previous days, simply remains up-to-date.
Even GDXJ moved exactly as I wrote it might. Quoting from yesterday’s Gold Trading Alert:
Miners are not trading yet at the moment of writing these words, but given yesterday’s decline, and given that today’s rally in gold is smaller than its yesterday’s decline, it seems that the GDXJ might either rally to $100 once again or it might not be able to do that – moving higher, but visibly.
Indeed, the GDXJ moved slightly above $100 (touching the lower border of the previously completed flag pattern), and then it moved back down, closing the day well below $100.
The USD Index and crude oil are pretty much where they were yesterday – I have nothing to add on top of my previous comments.
The weak reaction to CPI in miners confirmed the weak reaction from gold and silver. They both, in turn, confirm the bearish outlook, and our positions remain well justified from the risk-to-reward point of view.
As always, I will keep my subscribers informed.
Thank you for reading my today’s free analysis.
Sincerely,
Przemyslaw K. Radomski, CFA