Gold, silver, and mining stocks moved higher once again yesterday and the former even managed to move above the declining trend channel. Breakouts are bullish and thus the outlook for gold improved significantly… Or did it? Gold’s price in terms of the euro and gold’s relative performance to silver and mining stocks make replying to the above question quite easily.

Gold soared yesterday likely based on the escalation of the trade conflict between the U.S. and China, but after several hours the rally was over.

On Thursday crude oil wavered between small gains and losses, but finished the day only 23 cents above Wednesday closing price.

Last Friday, silver declined early in the day only to rally almost 40 cents from the initial low. In our previous alert, we discussed the possibility of silver topping at about $16.65 and this level was reached. Is silver about to take a dive just like it did in late November 2017?

It’s been only a couple of days since Thursday, when we closed our short positions and we have already seen a sizable rally in gold and silver.

Taking profits on our short positions and closing them on Thursday turned out to be a good idea. Gold, silver and – on an intraday basis – mining stocks moved higher on Friday, while the USD Index declined

Remember how mining stocks soared on Valentine’s Day and how we wrote that a rally is not necessarily bullish? Guess what – this rally has been more than erased.

When it comes to gold investments and gold investment analysis, it’s surprisingly similar. You either like gold and think that it’s going higher right away or you’re “one of them”.