by Przemyslaw Radomski, CFA
Gold Seek
The big decline in the precious metals appears to already be underway (even though we are in a short-term corrective upswing) and it seems that gold will move much lower in the coming months even though it’s likely to move higher in the coming days. The big decline remains to be the most important development for gold and silver investors. Why? Because this decline’s end is likely to present the ultimate buying opportunity for precious metals and for mining stocks.
Before elaborating on this all-important issue, let’s briefly discuss the current events. The USD Index rallied yesterday and it moved higher also today, reaching its March 2016 high. We previously wrote that it was possible that we would see something like that and we also wrote that it didn’t really matter, as metals and miners were not likely to respond to an additional rally at that time (before a corrective rally). That’s exactly what (hadn’t) happened – metals and miners moved only a little lower yesterday and they are almost no changes today. This means that the precious metals sector continues to show strength relative to the USD Index and thus a rally in the former is still likely and it seems that our profits on long positions will become bigger shortly.