The US Dollar Is The Driver Of The Gold And Silver Sectors

July 26, 2021

The U.S. dollar, as the world reserve currency, is still the driver of silver, gold, and inflation pricing and the charts below show that they should now be ready to run based on the USD topping and then dropping in “price”.

At this point the U.S. Dollar has corrected upward but has now either entered its next top, or is very close to that overhead resistance. Thus, we appear to be at the point where the USD will very soon start to move lower causing Precious Metals pricing across the board to start to move up aggressively, once again. In fact, I suspect that we saw a glimpse of exactly that into the close last week. All USD comments are on the chart.

GOLDRUNNER

SILVER- READY TO RUN?

The second chart shows the Silver price cycles from July into August in the Silver bull market. At this point in time Silver appears to be mired in a large triangle correction that appears ready to end. With Dollar weakness most likely to be the driver of higher Silver and Gold pricing, soon we can see the probability for Silver to bottom in the triangle very soon. Thus, the set-up for Silver (and Gold) to take off to higher prices appears to match the USD’s terminal run on the chart above.

POTENTIAL UPSIDE SILVER TARGETS

The final chart of logarithmic Silver shows Silver currently sitting around the bottom of a huge triangle yet, with the USD now appearing to be topping at this time, the odds are very good that Silver will be climbing aggressively in price. The potential for Silver to start a run higher out of its triangle is very good as the USD tops. Thus, the potential for Silver to bust upward out of the triangle for a coming $8 to $10 run-up to $33 to $35. Such a run would likely cause the Silver stocks to surge.

GOLD

If the USD starts its next decline very soon, then Gold would obviously very likely make a big run higher, also. Such a run would likely take Gold up to its old highs, and then higher although we will leave that chart for another day.

THE BOTTOM LINE

The bottom line is that “everything real” should now be ready to run based on the USD topping and then dropping in “price”.

Disclosure: Please understand that the above is just the opinion of a small fish in a large sea. None of the above is intended as investment advice, but merely an opinion of the potential of what might be. Simply put: The above is a matter of opinion and is not intended as investment advice. Information and analysis above are derived from sources and utilizing methods believed reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Comments within the text should not be construed as specific recommendations to buy or sell securities. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. In the interest of full disclosure, GOLDRUNNER is personally invested in the Precious Metals sector including various Precious Metals and other individual stocks and reserves the right to modify or eliminate any or all positions at any point in time.

Below are links to Goldrunner’s other recent – and still timely – articles:

  1. Goldrunner: Gold Could Jump To $1,900-$2,100 In Next 30 days – Here’s Why (+6K Views) July 8, 2021

    • Such high inflation expectations could very well see Gold bust up through that red downtrend line pretty easily to perhaps as high as $2,100/ozt.

  1. Goldrunner: Gold & Silver Showing Rare – Ultra Bullish – 3 Fan Line Formations November 3, 2020

    • Charts of Gold and Silver are now showing a seldom seen phenomenon – a 3 fan-line formation. I have only seen a couple of these formations over the years, and they have always been explosive.

  1. Goldrunner’s Insights On Coming Gold/Silver Run Up, USD Collapse & Inflationary Depression August 22, 2020

    • No one has a better grasp of the economic environment than *Goldrunner, a technical analyst who does fractal work. He sees the situation clearly given his extensive proprietary chart work that has put him head and shoulders above all the others in his field.

  1. Goldrunner: Gold Will Go Ballistic When the USD Goes “Zimbabwe” August 13, 2020

    • Jim Sinclair has come out with a video and stated that with so many Dollars being printed to uphold the economy that Gold would eventually rise up to his top target of $87,000 an ounce.

  1. Goldrunner: “Buy Junior Explorers With LARGE Silver Reserves-in-the-Ground For Great Leverage” July 30, 2020

    • The REAL leverage in the precious metals arena goes to those companies with very large amounts of silver reserves in the ground and that leaves the real price rise advantage to the owners of those ounces in the ground, i.e. the little explorers.

  1. Goldrunner: Avoid Massive Devaluation Coming In USD – Here’s How July 30, 2020

    • The Fed has “gone Zimbabwe” but you can protect yourself by converting your Dollars to Gold and Silver! It’s that simple – really.

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