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US Dollar Breakdown Clears The Way For A 70s Style Silver Rally

Commodities / Gold and Silver 2017 May 23, 2017 - 04:35 PM GMT

By: Hubert_Moolman

Commodities

The apparent breakdown of the US Dollar Index is setting silver up for a spectacular rally. In fact, it could rally like it did in the late 70s. Below, is a long-term chart of the US dollar Index:


On the chart, I have marked two fractals (1 to 3). Both fractals exist in similar conditions – relative to the relevant Dow/Gold ratio peaks (1966 and 1999), as well as Dow peaks. Both fractals span over the period of the first phase of the silver bull market during the 70s and the current era (2001 to 2017), respectively.

If the comparison is justified, then the US Dollar index will fall significantly during the coming months. Given the fact that silver has traditionally had its strong rallies during times when the US Dollar Index was falling, this bodes well for a silver rally.

However, it is important to note that a meaningful silver rally is dependent on whether the March 2017 peak is the actual peak for the Dow. If it is not, then we will have to wait longer.

For more on this and this kind of fractal analysis, you are welcome to subscribe to my premium service. I have also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report

Warm regards

Hubert

“And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

© 2017 Copyright Hubert Moolman - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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