Just a quick note to let you know that silver has more than erased Friday’s gains, which is what we warned you about yesterday. Silver’s breakout was exactly another “fakeout” and a bearish signal, as such action often precedes significant declines. The situation is now a bit more bearish than it was on Thursday, before silver’s fake breakout.

It’s also a bit more bearish because of the way gold reacted to news from Europe. Talks between Greece and euro zone finance ministers over the country's debt crisis broke down on Monday, which is bullish news for gold… And gold (and silver) declined anyway (even despite declining USD Index).

All in all, the comments that we made yesterday remain up-to-date (and we think that the profitable full short positions should be kept intact). If you haven’t read yesterday’s alert (which was prepared for today’s session), we recommend that you do so today:

Gold & Silver Trading Alert: The Silver Signal

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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