Agnico-Eagle Mines up 7.76%, Yamana Gold Incorporated up 6.84%, Kinross Gold Corporation up 11.76%, Randgold Resources up 5.39%, Pan American Silver Corporation up 7.74%, Silver Wheaton Corporation up 9.38%.

We are pleased to report that these are some of the precious metals stocks that constitute a major part of our investment portfolio and have had a great day!

From the current charts we can see that the inverse relationship between gold and the US dollar continues to hold fast. The UD dollar dipped 0.52% on the news that the Federal Reserve had left rates unchanged at 2% and the Dow tanked 358 points. The beneficiaries were both gold and silver, which gained 3.96% and 3,35% respectively. This is more or less what had anticipated in yesterdays newsletter when we wrote:

The dollar is now and has been for some time the sacrificial lamb. As we can see from the above chart the dollar has experienced progressive slippage for the last two years. It has been unable to rise above its 200dma despite putting in a feeble rally recently. As the demise continues more and more people will realise that storing their wealth in a depreciating asset that offers a rate of return substantially lower than the rate of inflation is futile.

The Federal Reserve are talking tuff on inflation, it’s the only thing they can do. However talk, rhetoric and jawboning will not provide the US dollar with the crutches that it needs.

Note that the MACD’s golden crossover has held which is usually a positive sign. The lack of an interest rate increase has led the dollar to weaken and gold to strengthen. Also note that the rising 200dma (red line) is also supporting gold prices.

Silver was also a beneficiary as it gained $0.56 (Silver – continuous contract (EOD) INDX) Firm support at the $16.50 level has been found during silvers summer of consolidation. Again this precious metal is supported by its rising 200mda, which now stands at $16.19 and the technical indicators, which are reasonably positive. The technical indicators are well positioned for an upward move.

As we wrote on 2nd September 2007 in an article entitled silver versus gold;

We believe that silver will give us a hair raising, gut wrenching, white-knuckle ride, definitely not for the faint hearted. If you have some spare cash and you feel a little like Captain Jack Sparrow then come and join us in what we see as the most exhilarating ride at the starting gate right now.

All of our research, analysis and trades are published on our web sites together with our newsletter and alerts, which you can receive for FREE by clicking here for Gold and here for Silver.

Have a sparkling day!