Gold moved lower yesterday as the USD moved higher once again which might make you worried about the outlook, so we are sending another alert today, even though our views on the market remain unchanged.

Basically, gold reached the lower border of the medium-term trend channel that is visible on the medium-term gold chart in yesterday's alert. We had been expecting the decline to be identical or almost identical to the March - May one, and it just became such. We entered the long position earlier as the risk/reward ratio was already favorable (the risk that we would not see today's decline was too big and we didn't want to risk missing the following rally) and it still seems that it was a good idea.

Silver hasn't moved lower significantly today, so it seems that gold's decline is simply another piece of the puzzle that now fits into the "rebound scenario." Consequently, the short-term outlook remains bullish.

Thank you.

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

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