Gold & Silver Approaching Resistance as USD Nears Support
In the chart below we plot Gold, Silver and the USD on a weekly basis.
Gold and silver are both approaching stiff resistance dating back to their 2011 highs.
At the same time, both are nearing the completion of descending triangle patterns – such patterns are typically bearish and end in break-downs.
As the latter two precious metals approach resistance, the USD is nearing support.
This confluence of technical set-ups likely means precious metals are the sector/space most ripe for trading opportunities in the near-term.
Any bounce in the USD, which we highlighted as a possibility yesterday, could put pressure on the precious metals.
Any decline in the currency likely produces the opposite.
Remember, gold is likely headed for either $3,000 or $1,100 in short order, depending on how its descending triangle pattern breaks.