Here is yet another bullish catalyst for gold, silver and the miners.
“This commodities bull market is the greatest opportunity in your lifetime. Fortunes will be made.” — Graddhy out of Sweden
Yet Another Bullish Catalyst For Gold, Silver & Miners
King World News note: A US Dollar Index breakdown from current levels will ignite the gold market to even higher levels priced in US dollars, but more importantly the two key markets which have been lagging — silver and the mining stocks — will also explode higher. Take a look…
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Five US Dollar Charts To Watch
March 12 (King World News) – From Citi’s Naveen Nair: US dollar is starting to give and CPI today could be the break. Here are five USD charts that we watch. High beta currencies in particular are on the verge of breakouts.
US Dollar Index
The dollar could trend weaker in the coming days, especially after US employment data showed signs of softening. This has reduced sensitivity to a higher inflation print today, and keeps risk tilted towards a risk rally in the event of an in-line or soft CPI print. Our trader also keeps a short USD view, while our strategists like to sell dollar rallies.
In techs, the marginal close below the 102.77 support level last week has opened up a move towards subsequent support at 101.65-101.91 (76.4% Fibo and January 5 low). Below that, the key support lies at 100.62 (Dec lows). To the upside, keep an eye on resistance at 103.32 (55d MA).
BREAKDOWN WARNING:
US Dollar Index Support At 100.62
Australian Dollar vs US Dollar
High-beta AUD looks set to surge IF we see a rally in risk post CPI. Techs also suggest a move higher after we posted a bullish outside week (bullish indicator) while also breaking past resistance at 0.6590 (55w MA). We look to interim resistance at 0.6700 (psychological level) before the stronger 0.6770-0.6800 (76.4% Fibonacci, psychological level). To the downside, keep watch on 0.6590 (55w MA), though 0.6443 (2024 low) is the key support level.
US Dollar vs Japanese Yen
Sensitivity to rates differentials means that JPY could be one of the biggest gainers if we see the lower yields narrative take hold on a soft/in-line CPI print. Legacy JPY shorts could be squeezed by the move and this could take out the strong support level at 145.90-146.26 (Feb low, 200d MA). IF we see this, it would open a further 2% move lower towards 55w MA at 143.41. Below that, keep watch on Dec lows at 140.25.
First layer of resistance will be at 147.55 (55d MA), followed by 149.21 (Feb 29 low).
US Dollar vs Canadian Dollar
Amidst a hawkish BoC, as well as the recently weaker dollar, a potential double-top pattern (reversal indicator) is forming in USDCAD, with 1.3441-1.3451 (double top neckline, 55d MA) the key level to watch. IF we decisively close below both, the double top formation would suggest extended losses towards ~1.3300. We flag interim support at 1.3359 (Jan 31 low). Resistance is likely at 1.3600-1.3605 (Feb high, psychological level).
US Dollar vs Swedish Krona
Markets posted a bearish outside week (as a continuation) and tested the key support at 10.13-10.17 (May and July 2023 lows). IF we see a break lower, it could open up a 2% move towards Dec lows at 9.9066.
Gold vs The Dollar, And Fiat Currencies
King World News note: It is important to remember that gold is in a bull market vs all worthless fiat currencies, including the US dollar, which is why the price of gold has surged from $250 to $2,200 in the last 23 years. Meaning you have been constantly lied to about strength in the US dollar being negative for gold. That has been a key part of the propaganda of the failing price suppression scheme which has involved attempting to weaken the price of gold when the US dollar rallies. It’s all bullshit smoke & mirrors. Just ignore it and remain focused on the big picture for gold.
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To listen to Alasdair Macleod discuss the price of gold breaking above $2,200 CLICK HERE OR ON THE IMAGE BELOW.
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