Stock market fears temporarily subsided, and gold slipped back below $1290. A close in gold below $1280 would support a final decline in precious metals and setup the next buying opportunity at the end of May.


-US DOLLAR- The dollar closed above the trendline, and it looks like the beginning of a short-term breakout. I suspect prices will rally above 98.00 as gold completes its decline into a 6-month at the end of May.

-GOLD- Prices finished below $1290 and it looks like the spike to $1304.20 was merely a knee-jerk reaction to tumbling stock markets. Cyclically speaking, I believe the next turning point will come at the end of May and should time the next 6-month low. I’d like to see prices bottom around the 200-day MA.

-SILVER- Silver remains in the descending wedge formation. We could see prices spike below the lower boundary and test $14.00 – $14.20 before bottoming later this month.

-GDX- It looks like we will see one more decline in miners before prices bottom at the end of May. Closing below $20.20 would confirm.

-GDXJ- A daily close in GDXJ below $28.20 would confirm a breakdown and establish our May target box.

-SPY- Stocks closed back above the 10-day EMA and gold slipped as stock market fears receded. The potential for a broadening wedge pattern remains. I will look for resistance and a possible top around the 300 level. A sustained advance above 305 would imply more upside for US stocks.

-WTIC- Oil closed above resistance at $62.00. Progressive closes above $64.00 would imply a short-term breakout. The stock market and oil continue to trade in tandem.

Have a great night.