As this boring consolidation continues interest in the metals wanes. Since the beginning of 2018 there has been very little excitement in the metals. However, the longer the consolidation goes on, the more the pressure is building for a big move one way or the other. It is my belief that the big move will be up, but that is not yet confirmed.
In gold the 2016 bull market is still intact and consolidation continues. Nothing to see here (yet).
Silver also remains in a range. Nothing to see here either.
As you can see both metals remain range bound and need to break 1360 and 17.00 respectively to break upward resistance. But lets have a look at the dollar.
There are a couple of things to notice with the dollar. The first and most obvious is that it appears to be rolling over and setting up for a big fall into next week. More importantly however is the dollar in terms of Gold and Silver. Look at the strength of the dollar upward move since the beginning of May. Now look at Gold and Silver in the same time period. One would expect a strong up move in the dollar to destroy gold and silver but they have been very resilient. This doesn't mean that they have decoupled, it means that gold and silver are looking very strong.
If the dollar rolls over next week then gold and silver will react strongly and retest resistance again.
Perhaps the move will be strong enough to break resistance once and for all, which would telegraph major problems for the dollar.
Of course we cannot know what will happen next week. Predicting price moves has become increasingly difficult in today's unpredictable geopolitical environment, but the charts do seem to indicate a big move ahead. If not next week, then soon (before October by my estimates).
For disclosure, I'm not a professional financial advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.
