Recent commentaries

The main stock indices have recently moved above their January 2010 high. Please note that the breakout has not been confirmed by all indices, so the risk of a downturn is still not low at this point. This is generally a bullish factor, but caution is necessary in the short run - especially given the high level of similarity between the situation in the gold market in August 2009 and the one that we have today.

When politicians talk it is always a good idea to try and read between the lines. Therefore, in the first part of this week's Premium Update we comment on the recent gold-related statement made by China's chief foreign exchange regulator, Yi Gang.

Additionally, we comment on the long- and short-term situation on the silver market.

In one of our previous essays we mentioned that the situation in the USD Index appears bearish, but it has not been the main driver of the PM prices lately. It's been the general stock market that used to drive gold and silver prices lately, which means that the situation is now less than perfectly bullish, especially in the short term.

Therefore, this week we would like to let you know what we think about the main stock indices and how it may influence the gold market.

In our previous essays we have covered the situation on the gold and silver markets, but since there's more to the precious metals sector than just these two metals, we have decided to supplement the previous analysis by covering the precious metals stocks.

Things that we covered this week include the HUI Index, GDX ETF, and key signals coming from the GDX:SPY ratio. Additionally, we have covered the situation on the junior sector and its relative performance to gold itself.

We've started our previous essay by describing several interesting facts about the U.S. Dollar. However, since fundamentals are one thing, and the short-term situation is quite a different thing (people, and thus markets that they create tend to act emotionally in the short-term), we decided to also provide you with the analysis of USD charts.

Additionally, we cover the gold market from the non-USD perspective.