The USD continues to look extremely weak.  In the chart below, we can see that the USD topped in January of this year.  Note that the USD was never able to close above the important 61.8% retracement level, a negative event, while at the same time exhibiting pronounced negative divergence.

Over the next several months, I read many reports from prominent websites promoted here indicating that the USD was back-testing this and printing that as half-way patterns to 120.  However, once a monthly reversal was confirmed in March-April of this year, there was no need to overthink it – this simple chart was all I needed to indicate the USD was toast.

Now with the USD nose-diving on a monthly basis, I am seeing and hearing more and more calls for an eminent “bottom”.  Perhaps that is why gold and silver have remained muted relative to the USD’s fall.

Yet I see the same technical indicators have broken below the levels they fell to and bounced at the 2016 low of 91.88 (circled), indicating to me that the 91.88 price level is unlikely to hold as support, other than perhaps a temporary dead-cat bounce.  Once this comes to fruition, despite market expectations to the contrary, I believe gold and silver will respond accordingly – by taking out the 2016 highs in short order.