Chart of the Day: Dollar Index Headed for Rapid Collapse?

The USDX is sitting at precarious support near 79,particularly as it’s long term uptrend has been penetrated to the downside near 82.
Should support at 79 fall, a gap down in the dollar to 74.50 looks imminent.

We don’t think SD readers need an explanation about what a big gap down in the dollar will mean for gold and silver prices.

 

Chart courtesy Matrix Markets

 

Comments

  1. Do you think that the cartel are calling this a smackdown ?

  2. No! It is a head fake.

  3. “We don’t think SD readers need an explanation about what a big gap down in the dollar will mean for gold and silver prices…”

    Unfortunately, zip for us outside the US :-( Every rise in PM prices due to USD weakness is cancelled by a commensurate rise in the Australian dollar. For us, buying pecious metals denominated in US dollars is also a forex trade!

    That said, PMs still continue their bull run even in Aussie dollars, just not quite as spectacularly as reported in US dollars when the USDX is plummeting.

  4. Where’s iluvPMS?  No word on when the dollar index is going to make it 88 and silver to $20?

    • @SoL  +1!  I was just thinking the same thing actually a day or two ago. ILUV is SD’s own little Jeffrey Christian…too bad he only shows up after big raids and declines

    • ROFLMFAO Good one SoL! That’s some funny a$$ sh!t. What made you think of that joker?

    • Haha iluvPMS! I remember before the current SilverDoctors website which was the blog, he was always annoying to most of the people but I find his arguments amusing. There were also the Anonymous trolls who were bugging others on SD blog.

  5. And along with rising PM prices food will also rise leaving those living on the edge even poorer or without. Things will start to go bad around then with food riots in large cities.

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