Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown

Commodities / Gold & Silver 2024 Jun 08, 2024 - 07:56 AM GMT

By: Hubert_Moolman

Commodities

The US dollar is on the brink of a major meltdown. This is apparent based on fundamental and technical analysis. Over the last 5 years, the US dollar has sustained some major damage through policy without losing much value against other fiat currencies.

In other words, the market has not yet taken into account the true (debased) state of the US dollar, but it will soon. Since the US dollar is probably the  most significant currency in the world, its meltdown will be devastating for many.

Therefore, it is imperative to find a safe haven during a US dollar meltdown. This is a monetary crisis and should preferably be addressed with monetary alternatives. Gold and silver are the premier monetary assets, so they should be an obvious choice.


Bitcoin and crypto currencies—love them or hate them—are, in themselves, a major sign of monetary meltdown. I have previously written about this, and how it relates to the low velocity of money now and during the Great Depression. These will also likely provide (temporary) protection against the effects of a US dollar meltdown.

The charts for these safe havens are really bullish and warn of a major US dollar meltdown.

Gold

Below is a gold chart I shared previously:

                                   

I've marked out two patterns showing how the recent breakout puts gold in the acceleration phase of the bull market. Both patterns start at the Dow/Gold ratio peak (1966 and 1999, respectively). After the Dow/Gold ratio peaks, gold went on a strong bull run, which continued even after the 1973 and 2007 Dow peaks, respectively.

After the peaks at point a, the chart formed a cup-type pattern. During this consolidation (the cup), there was a secondary Dow/Gold peak, and interest rates also reached an important low. The structure of the 70s pattern was such that after the bottom (point b) during the cup phase, the price moved relatively slowly up at first, but once it broke out at the red line, it moved up quite fast.
The current pattern may be following the same progression. The move since the bottom of the cup phase (point b) has been slow, but now that the price has finally broken out at the red line, we may see an accelerated increase in price (of course, we are probably seeing some sort of retest or consolidation before the accelerated move higher).

Silver
Below is a silver chart previously shared:

The 49-year pattern from 1919 to 1968 has a similar form to the one that started circa 1980. Here, I have pointed out their similarity as it relates to time. There may be rounding differences due to the yearly closing balances.

The first cup started at the 1919 peak, and it took about 13 years to get to the bottom (1932), whereas it took about 21 years to get to the secondary bottom in 1940. In a similar manner, the second cup started at the 1980 peak, and it also took about 13 years to get to the 1992 bottom and about 21 years to get to the secondary bottom in 2000.

It took about 24 years from the secondary bottom in 1940 to the break out of the cup in 1963. About 24 years have passed since the secondary bottom in 2000. So, this year is likely the breakout year, provided the pattern stays true to the original one.

Bitcoin

Below is a long-term chart of Bitcoin:

Bitcoin consistently rallies after important DXY (dollar index) peaks. This time will be no different. The minimum target for this rally is around $138k. The alts (other major crypto currencies) are more likely to outperform Bitcoin during this rally.

For more of this kind of analysis, I have a Premium Service as well as a  Silver Fractal Analysis Report that provides more insight regarding the gold and silver markets.

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

© 2024 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.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in