Gold moved higher yesterday but finally closed at/below the declining resistance line (depending on whether you look at the GLD ETF or spot gold). This means that we didn't see any change in the outlook - it remains unclear as far as the short term is concerned.

The GDX ETF moved just a little higher, on average volume - not a sign of true strength.

Silver moved to its declining resistance line (analogous to the one seen in the gold market) but at the same time the SLV ETF moved above its 20-day moving average, which is a bullish indication. This breakout hasn't been confirmed yet, so the outlook has become only slightly more bullish based on it.

The USD Index and the S&P 500 both declined yesterday, which means that the precious metals sector had good reason to move higher. The move higher was small in case of gold and miners. The relatively strong action in silver is not enough to say that the entire sector is now showing signs of strength. In fact, silver used to "pop up" very briefly right before big declines. Consequently, we don't view yesterday's price action in silver as overly bullish.

To summarize:

Trading – PR: No positions.

Long-term investments: A half position in gold, silver, platinum and mining stocks. As far as long-term mining stock selection is concerned, we suggest using our tools before making purchases: the Golden StockPicker and the Silver StockPicker

As always, we'll keep you updated should our views on the market change. We will continue to send out Market Alerts on a daily basis (except when Premium Updates are posted) at least until the end of October, 2013 and we will send additional Market Alerts whenever appropriate.

As a reminder, Market Alerts are posted before or on each trading day (we usually post them before the opening bell, but we don't promise doing that each day). If there's anything urgent we will send you an additional small alert before posting the main one.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA