Gold And Silver At Make Or Break Level, As Dollar Breaks Out Big Time!

Published here: http://goldsilverworlds.com/price/gold-and-silver-at-make-or-break-level-as-dollar-breaks-out-big-time/

The metals sold off last week. Gold is testing righ now its August lows. This is a critical price level, gold bulls would like to see this price level hold, otherwise a washout (capitulation-alike) decline could be in the cards. As for silver, it is holding up slightly better.

According to the Andrews Pitchfork methodology from PitchforkPlayground.com, gold has been whacked hard as the US Dollar rallies. Support is occurring at the lower median line extension of the modified-Schiff pitchfork and the July/August lows.

Silver was working its way higher inside the blue Andrews pitchfork but support along that fork’s lower median line has now failed. Price is finding support at the median line of the red Andrews fork for now.

Both gold and silver are trading at a make or break level. Do not underestimate the importance of these price levels.

The outlook of the precious metals is clearly not supported by the secular breakout of the U.S. dollar. As the multi-decade chart below shows, the dollar has broken out of its declining secular trendline, earlier this year, and is about to confirm its breakout by moving higher from these price levels. Watch the 100 dollar index price level, as that breaking through it will be the ultimate confirmation of the dollar’s breakout. That will undoubtedly have serious implications for precious metals.