The USD Index could soar soon – very soon.
I’m posting today’s analysis later than normally, as I’ve been waiting for something to happen on the markets – so that I would have something to comment on.
Basically, nothing happened on the precious metals market today (silver’s move to new all-time highs seems almost normal as we’ve been seeing new all-time highs quite frequently recently), which means that everything that I wrote yesterday and in the previous days remains up-to-date. Especially that silver’s rally that materialized after I had posted my Gold Trading Alert, was in perfect tune with it. Quoting:
[that’s yesterday’s chart]
“Silver’s strength here is truly exceptional. Dollar down or dollar up – the white metal not only broke to new highs, but is refusing to decline. Instead, it’s pushing further.
It looks ready to soar to new all-time highs any day or hour now (no wonder, silver has 100 reasons to do so)”
After I had posted the above, silver has indeed moved to new all-time highs, and today silver futures even moved a bit above $62.
Another milestone was reached and another round price level was broken.
Silver is holding onto its new levels after breaking higher, while neither gold nor mining stocks broke higher recently.
We’re going to get the Fed’s next interest decision shortly and this, along with the following press conference, could trigger some moves on the markets.
In both previous cases when the Fed cut rates this year, the USD Index rallied. Right now, the USDX is in a perfect technical position to rally substantially – it verified several breakouts and it’s simply waiting. It might get a trigger later today.
But the USD Index’s rally is not what will be most interesting to see. The key thing will be what happens on the precious metals market as a result of USD’s rally.
Given silver’s current strength, it looks like it could hold up well, while gold and miners remain vulnerable. Our positions reflect that.
Thank you for reading today’s free analysis. We recently made major shifts in all parts of the portfolio. If you’d like to read more and stay up-to-date with the quick trades, intraday Alerts, and all the key details (trading position details, profit-take levels) that my subscribers are getting, I invite you to sign up for my Gold Trading Alerts or the Diamond Package that includes them. Alternatively, if you’re not ready to subscribe yet, I encourage you to sign up for my free silver newsletter today.
Przemyslaw K. Radomski, CFA
Founder
Golden Meadow®