Gold and silver prices have been quite stable today, and I am going to take the plunge and go long in both metals. All of the bullish factors I outlined in last night's blog are still in place, and even if prices correct down a bit more this week, it will probably be minimal. I am going to set a stop loss on this trade for gold around $1310 and for silver around $22. We are close to these levels now so our risk/reward ratio is good. I would like to point out that I am still trading the precious metals short-term until I am more certain that the final bottoms in gold and silver's long-term cycles are in. That said, there is the potential here for a rally that could reach the $1500 level in gold and the $27 level in silver before any serious correction. Going long today in both gold and silver.
I am still standing aside the broad stock market and crude oil until directional signals are more clear.