US Dollar Cycle Points To New All-time Highs For Gold / Commodities / Gold & Silver 2020

The US Dollar index is not a true measure ofvalue of the US dollar. It just tracks an “exchange rate” between the US dollarand a basket of significant fiat currencies.

For a true measure of value of the US dollarit is better to look to Gold and Silver. However, there is a relationshipbetween significant Gold rallies and the US Dollar index.

Gold has a tendency to rally at a certaintime in a US Dollar index long-term cycle. Previously,I have looked at significant Silver rallies, relative to the US Dollarlong-term cycle. Here, I would like to look at Gold.

Here is a long-term chart of the US Dollarindex:

On the chart, I havemarked two fractals (1 to 5). Both fractals exist in similar conditions –relative to the relevant Dow/Gold ratio peaks (1966 and 1999). During theperiod from Points 1 to 3 on both charts, the first phase of the Gold bullmarket occurred (70s Gold bull market 1971 to 1980 and current Gold bull market1999 to 2011).

During the period frompoints 3 to 4, Gold started a significant correction (1974 and 2011), andbottomed years later (1976 and 2015). At point 4, the Dow peaked (1976 and 2020- true if Feb 2020 is Dow top).

Another important thingthat happened during both these periods, was Gold being much stronger thanSilver. This was especially more pronounced during the current pattern period,since the Dollar was much stronger during the current Gold and Silvercorrection (from 2011) than during the one from the mid 70s.

Below, is the samechart, with the Gold chart included for reference purposes:

Notice that the 1980 and2011 Gold tops came close to the end of a downtrend of the US Dollar index.Also, it came just after the US Dollar index made new all-time lows in 1978 and2008.

This is what I would belooking for at before the next Gold peak. If not a new all-time low for the USDollar index, then at least a decent downtrend before calling a potential Goldpeak.

If the current patterncontinues to follow the 70s pattern, then the US Dollar index is likely todecline significantly over the coming months and years, while Gold makes newall-time highs.

During the period frompoint 4 to 5 (in the 70s pattern), Gold went from about $100 to $850. How highcan Gold go this time?

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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