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A pause in selling as the USD exhales?

Commentaries & Views

No material change in price action has occurred overnight as the USD consolidates at the long-term resistance level shown yesterday.

There is a bounce occurring in major US indices this morning; still no capitulation despite extreme anxiety in terms of sentiment.

Should USD strength persist over the medium term however:

  • Stocks may need to revisit their 200-day moving average (S&P shown below on weekly intervals)

  • Silver may break down from its current support for a move down into the $18 - $19 range.

Should the dollar form a false break out, or waiver at its current long term resistance level, silver will likely hold support in the $21.50 area again. Gold continues to hold $1850, and could be the "canary in the coal mine" signaling that a top in relative USD strength is near.

Thanks and have a great day,

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.