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

 

  1. “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.

    • @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

    • 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.

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