Gold, Silver and U.S. Dollar Charts Updated

Today we present charts of the U.S. dollar, gold and silver with the obvious trend lines shown.

As always, charts can be clicked to view a larger version.

In the U.S. dollar chart above, we see a nearly two-year uptrend in danger of being broken.

Contrary to popular belief, gold and the dollar do not always correlate.  For example, over the past six years it's tough to find any consistent correlation.  See for yourself by comparing the dollar chart above with the chart of gold below for the same time period. 

When looking at the near-term chart of gold below we see that gold might also break a trend line, so we believe that a move higher in gold out of the downward channel its been in the past year will probably coincide with a break downward in the dollar.

The silver chart suggests an upward break.  That's encouraging for those who, like us, are currently bullish on precious metals in the short term, however it doesn't mean much without a confirming move higher in gold.

A month ago, we posted this commentary and an update of the "GLD gaps chart".

Back then, we predicted that "GLD will approach $130 or at least rise to meet the downtrend in the next week or two."

Roughly two weeks later, GLD did hit $130 and it's now at that downtrend (shown in red) as seen in this updated version of the GLD gaps chart:

Should there be a sustained move higher in gold, expect GLD to reach the resistance area between roughly $142 and $150.

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