usd index

The short-term chart this week shows that the dollar reached a local bottom precisely at the cyclical turning point. This was also the case last August. Since this rally has been ongoing, gold, silver and mining stocks saw their rally end but prices did not plunge.


http://www.marketoracle.co.uk/Article24245.html


Consequently, once the USD does decline, the rally in the metals could be resumed. The area marked with the red ellipse on the above chart includes what we believe to be the next local top for the USD Index.

The USD Index is relatively close to its local top and therefore a local bottom should be seen soon for precious metals. This may very well provide a good buying opportunity for investors in gold, silver, and mining stocks