This is a very strong day for asset prices, with basically anything that has a ticker symbol being in the green. I’d like to direct your attention to precious metals, which have been soaring for over two months now. First, I’d like to point out that gold is approaching the underbelly of a trendline, which may prove to be an important inflection point of resistance.
Over the same timeframe, take note of how silver has been losing momentum, even with its powerful upswings. Every high is nothing more than a “lower high”, only to succumb, in the end, to strong selling.
I’d like to suggest that it all depends on the dollar at this point. The $DXY, US Dollar Currency Index, looks VERY bullish right now, with an exceptionally clean cup with handle pattern. Should this thing fly higher, you’ll see metals melt away.
