Yesterday’s price action in silver and miners was truly telling.
On Friday, I wrote that it’s either $100 or $120 for the white metal as its next target. Yesterday, I added that it was likely the latter.
The intraday reversal in silver just below my $120 target (at $117.75) might have marked the final top for the time being, or we might see another attempt that takes silver to $120 or even a bit above it before a bigger decline (that is then followed by an even more epic silver rally)
Mining stocks’ daily decline, however, is not ambiguous. It’s a clearly bearish indication.
GLD, SLV, and GDXJ all opened higher yesterday. But it was only GLD and SLV that ended the day in the green. The GDXJ managed to decline more than it had rallied, creating a clear daily reversal.
Technically, this could have marked the top.
Fundamentally, the week is rich in announcements, including the Fed’s interest rate decision. This could trigger another run up – perhaps silver could reach $120 based on that and collapse thereafter (along with gold and mining stocks).
Meanwhile, the USD Index moved to two declining support lines and the levels from which it previously reversed in 2025. Together, this provides very strong support, and is a reason for the USD Index to form another bottom.
Remember when the 2025 bottom formed? When the Fed started cutting rates. And we have the rate decision tomorrow.
Also, please note that even though the USD Index declined recently, the anti-dollar bitcoin failed to rally.
It simply consolidated below the flag pattern.
Shorting bitcoin now seems like an extremely favorable trade from the risk-to-reward point of view.
The precious metals moved higher. Cryptos have not.
Rallying USD is likely to trigger declines in all of them, but bitcoin has been poised for a huge decline for some time now. While we don’t have a definite proof that the parabolic upswing in gold, silver, and miners is over, the consolidation below the flag in bitcoin despite dollar’s decline IS a technical proof that bitcoin is about to slide.
If you haven’t entered short positions in bitcoin yet, this is your chance to open or add to those positions. Details are available to my Gold Trading Alert subscribers.
Thank you.
Przemyslaw K. Radomski, CFA
Founder
Golden Meadow®