VRA Update: USD, Precious Metals and Miners On the Move - This is Why and What You Should Do

Make sure and pay attention to what is happening right now in the USD (US dollar) and precious metals (and overall market). We are entering a potential "cycle reversal"...the exact reversal that I have been writing about...and should the move confirm, you will want to make sure you are positioned for significant profits in the coming days and weeks.

Within an hour of the market open today, precious metals and the miners began to ramp higher. Within minutes, gold was up more than $20/oz, and silver up more than double that in percentage terms.

Gold is last quoted at $1204 (+2%) with silver at $16.40 (+3.8%).

Of course, the miners moves are accelerated...that's the beauty and beast of the leverage they provide...but this morning we get beauty, with GDX (mining ETF) up 3.8% at $20.10. The question is, will this finally be the move that takes precious metals and miners into bull market confirmed status?

The Answer May Arrive This Week

All eyes are of course on this weeks FED meeting, but the chart below is what the worlds best investors are watching most closely...the US Dollar.

Below is a one year chart of the USD (in blue), along with a one year chart of gold. As much as anything, this chart makes the strength in USD and corresponding weakness in gold, crystal clear.

BUT...take a closer look at the action over the last 45 days or so in the dollar. This is what I have focused on in recent updates, and if the pattern of "rolling over" in the USD continues, near record USD longs could quickly begin to reverse their positions. And yes...this continues to be my forecast.

The fundamentals for a massive move higher in precious metals and the miners have been in place for some time. We may find out this week that the price action finally confirms that the bull market is back.

Here's the chart...we can clearly see how the trend line in the USD is breaking down, along with a corresponding move higher in gold.

Until next time, thanks again for reading...

Kip