SeptDXWhile gold, silver and mining shares catapulted from overnight and early attempts to manipulate them lower…
The U.S. dollar has lost the psychologically important 80-handle, it lost its 200 day moving average on Friday and its 50 dma today. 

Submitted by Morris Hubbartt:

The dollar’s failure is probably being masked by a gold market that feels a bit like it is “under attack”. The line in the sand that I have set for the dollar is 80.50It has closed under that key price numerous times, which indicates technical deterioration.
This “Cork In The Sea” weekly chart highlights a massive symmetrical triangle formation, with a horrific final price objective of about 50 for the USDX.   Where would gold trade if the dollar were to suffer such a catastrophic decline?  I believe it would trade above $4000 an ounce.

Submitted by Morris Hubbartt:

For several weeks, my US dollar analysis has been focused on daily charts. The dollar’s current counter-trend move has not taken the price above 80.50. I think the rally is ending here, and a new decline is about to begin.   My focus today is on the larger picture portrayed on the weekly chart.  Here, 80.50 is also a key level.
Since 2005, the dollar has meandered aimlessly between about 70-90, creating the appearance of a cork lost at sea.   Now, a substantial breakdown seems to be occurring.  Oscillators are continuing to “head south”, intensifying the long-term downtrend in the world’s reserve currency.   

In particular, please note the action of MACD, which is producing a fresh sell signal.  Each high point attained by MACD is lower than the previous one.   The chart is covered with technical non-confirmations, suggesting the dollar may be ready to tumble. 

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.