This could be huge. Right now we can see both gold and silver breaking out and this is due to the US dollar is continuing to fall. The dollar is now very close to a major price zone. Lets have a look:
Comment: As you can see, we are really close to the 91 USD level and if we will fall below that level, things could escalate very rapidly and that would be extremely bullish for gold and silver. Therefore, lets take a look at the gold market:
Comment: Gold is right now up more than 1% and that is a lot for gold for one day and we are now way above the 6 year old descending monthly trendline so this is very significant.
Now, lets end this by looking at silver:
Comment: Silver is now up 1,8% and is showing some major strength. However, compared to gold, silver has not crossed the monthly trendline yet. However, when we have trend changes like this, gold is usually the one to take the lead and once the outbreak is established, silver will take over. So, I assume that this will be the case this time as well.
We need to take a close look at this development, it could be very important if you are investing in gold and silver and mining stocks.
Happy trading!