Never mind the headlines, the US dollar and the Gold/Silver ratio will decide what’s next
The 2 Horsemen of the Liquidity Apocalypse, the US dollar and the Gold/Silver ratio, are firm and at the moment receiving liquidity (USD directly and literally, and the GSR theoretically as an indicator) in a liquidity-challenged market. That appears to be manifesting in the precious metals initially, as is often the case. But if you’ve looked at the bloated pig lately, you may see an obvious (perhaps too obvious?) technical situation.
As to the 2 Horsemen, the US dollar and Gold/Silver ratio are aligned to do more damage if USD breaks resistance and the GSR breaks consolidation to the upside. To review, the US dollar is still the reserve currency (De-dollarizers: “boo!!!”) and when market liquidity is at issue, silver declines harder than gold.
In certain circumstances that bearishness fans out from precious metals and commodities to broader markets. So it’s your move Uncle Buck and GSR. What’s next?
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