Gold & Silver - From Failed Moves Come Fast Moves
There's a saying associated with false breakouts and breakdowns. It's something like, "from failed moves come fast moves."
Did this just happen in gold and silver? It sure looks like it to me...
The tireless strength in the US dollar has been sending gold and silver lower for months, breaking some key support levels. However, buyers have since showed up sending prices back above key levels alongside a weaker US dollar.
A similar situation has occurred in the gold and silver miners...
How long will this rally in precious metals last?
If you are talking about gold and silver you have to include the US dollar.
I've been tracking the US dollar index (DXY) closely for months and I've pointing out the increasing slope of the trend that tends to coincide with blow-off tops. Did we just see one?
Whether or not this is a big picture top in the USD and a bottom in gold and silver is yet to be determined but it's something worth paying attention to, as a weaker dollar should be positive for "risk" assets and equities in general.
What do you think? Has the US dollar peaked? Did gold and silver bottom?
Let us know what you think.
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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.