August 5, 2025 (Investorideas.com Newswire) Miners moved
quite sharply higher — just as the general stock market did,
but
All Eyes on the Dollar
There are only two charts that really matter right now — and
they both feature the USD Index.
On the above chart, we see that the USD Index corrected half of the
recent rally as well as the breakout above the mid-July high. The
USD Index is moving back up, which means that the test of the
support levels was successful.
The above chart shows that the short-term inverse head-and-shoulders
formation was verified. This, in turn, means that while the
early-August slide was sharp and — perhaps to some —
scary, it didn’t change a single thing regarding USD’s very bullish
outlook.
Those formations tend to be verified in this way — by the
price moving back to the neck level that was previously broken. This
test serves as a proof that the breakout was not accidental. The USD
Index passed this test.
Based on
this verification, the outlook is even more bullish than it was when the USD Index
was just after the breakout above this formation in late July. A
bigger rally is just ahead.
This is precisely why this is the only chart that matters right now.
Please move your attention back to the first chart. I already wrote
about this before, but as things get volatile, it’s easy to forget
about the context.
Peak Chaos Still Holds
The thing is that
the bigger moves in USD Index and GDXJ were aligned even if they
didn’t move in tune with each other on a single day or a few of
them.
This means that yesterday’s upswing in the GDXJ is very likely just
a temporary phenomenon — just as the decline in the USD Index
was. The lack of invalidation in case of the USD Index pretty much
tells us exactly that.
And since it is the USD Index that drives the GDXJ and not the other
way around, it is the major shift in the former that we saw in the
previous weeks that really matters. Yes,
gold,
silver, platinum
and copper can (and
are likely) to decline based on the upcoming USD rally as well.
And the best part? It’s early, and you can still profit from it,
especially that the
Peak Chaos theory
remains intact.
Thank you for reading today’s analysis — I appreciate that you
took the time to dig deeper and that you read the entire piece. If
you’d like to get more (and extra details not available to 99%
investors), I invite you to stay updated with our free analyses -
sign up for our free gold newsletter now.
Thank you.
Przemyslaw K. Radomski, CFA
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