Gold's 'Symmetrical Triangle' Breakout is Confirmed, Here's the Next Target | Gary Wagner
Summary
Gold Breakout: Gold has experienced a significant breakout from a symmetrical triangle pattern, pushing prices to levels not seen since the summer highs, signaling a potential strong upward trend.
Technical Analysis: Gary Wagner highlights the importance of the symmetrical triangle pattern and the E-wave thrust, indicating a bullish trend continuation if gold closes above the resistance line at 3473.
Silver Performance: Silver is outperforming gold, with prices breaking above $39 an ounce, confirming gold's strength and potentially leading the charge higher with a target of $42.
Dollar Index Impact: The weakening dollar, having broken through key moving averages, is contributing to the strength in precious metals, with a potential target of 95 on the dollar index.
Market Sentiment: The rally in precious metals is driven by both market sentiment and dollar weakness, with significant upside potential as long as these conditions persist.
Investment Strategy: Investors are advised to maintain discipline and carefully choose entry points, as the current market setup offers opportunities to capitalize on the bullish trend in gold and other precious metals.
Long-term Outlook: Gary Wagner remains bullish on gold, with an upper-level target of $3,700 per ounce, suggesting substantial room for growth in the coming months.
Transcript
[Music] All right, welcome back to Chart This. It's been a minute, but we're back. I'm Jeremy Saffron. Now, gold bulls are back in the driver's seat. After weeks of consolidation, a powerful breakout has changed the narrative, pushing prices to levels we haven't seen since the summer highs. Now, the question is, is this move for real? Here to break down the charts and tell us where we go from here is one of the best technical analysts in the business, our very own Gary Wagner, editor of the goldfor.com. Gary, have a good summer, man. Has it been? We missed you. >> It has been great and it's great to be back. And more than that, what a time to be back. I think that we've got a lot to share with our viewers and I think we're up for exciting times ahead and we've had some excitement already. So, um, it's kind of adding fuel to the fire. I'm really excited about where I think gold's going to head to. >> Okay. Well, let's get into that then. I mean, the last time you were here, you were a little bit cautious. You said that gold slipped below its 50-day moving average was a little bit alarming on a technical basis, but this week you signaled a major bullish development, a breakout in gold breaking above that compression china triangle. So, pull up the charts, walk us through what changed. What was the signal that flipped you from cautious to bullish? >> Absolutely. We are looking at a uh daily Japanese candlestick chart. And of course, I'm using a combination of studies, but basically trend analysis, Elliot wave, and pattern recognition such as this symmetrical triangle that we're witnessing. And what we notice is we've had a runaway bull market. If we move it back a little bit, you can see that as you know, we're sitting at 2300 in March of 2024. Not too much to move it to 3,200, 3,400. So, we've got a thousand and then it runs up to the all-time record intraday high well above 3500. Uh viewers, I am looking at a futures chart. So, the numbers will be a little bit different than spot. >> Um and then we knew at least our model predicted we were headed for a correction and that's what I thought we would see. But typically in a correction you get something like an A, a B, and then a C. And then you go back to the motive phase, a five count of bullish waves 1, three, and five. In between you get corrective waves two and four. But what happened was when we saw the market go up and hit this top, we had already drawn in the compression triangle and come down. We realized that this was not unfolding as a simple ABC, but something a little bit more complex. This is simply called a symmetrical triangle. The idea behind the symmetrical triangle, of course, is you're going to have a series of rallies followed by a series of shallow corrections, shallow rallies until you typically get to the E-wave. Following the E-wave as the model predicts and not so well this time you get what's called a thrust. A thrust is simply when prices break above that's the wrong one but is simply when prices break above the resistance line and and you get that hardcore breakout. We certainly didn't see that. And so we watched gold go back into the channel. Let me just kind of blow this up a little bit. uh go back into the channel and trade back down to the lower end of the channel. At this point, we realized since it did not occur here, meaning a thrust or a breakout, this would be if it's going to do it at all, this would be the time. This is when we got our subscribers long at about 3410. We had enough confidence that it's probably not going to break to the downside because Jeremy, a symmetrical triangle doesn't necessitate a breakout to the upside or the downside. Either can happen. Typically, we see it go to the prevalent trend direction, which of course is higher. And that's exactly what we saw. Now, today we're right at the resistance line. >> I hope our viewers can see it. I'll blow it up a little bit more. But as you can see, we've just gone over that a little bit. And so this was the breakout that I have been waiting for. And I believe that a solid close above, let's call it 3473 will signal that we are going to see a strong breakout to the upside. moving gold substantially higher even though it's already traveled from 3358 to 3478. So, it's gone a significant amount, but we think that there's a lot more room to the upside right now as long as we get an effective close above this resistance line, which it clearly looks as though that's a highly probable outcome. >> Yeah, what a fascinating setup, Garren. I mean, it has been all year. You noted that your clients went long on Monday at 3410. Uh in the futures market, I I guess here on the spot side, we're seeing gold pushing the highs of the day though, trading firmly in 3415, 3420 range. I mean, from a technical perspective, is this precisely the kind of price action you'd want to see to confirm that Monday's breakout is holding that old resistance and now becoming new support? >> Absolutely. Absolutely. the fact that when it did not break out where we had anticipated that it would this E-wave and came back down to the channel, we knew if this pattern was going to bear fruit, uh it would occur during the next rally, which is why we actually positioned ourselves early on in this rally. But the confirmation will come as the market closes today, which is in New York in just a little bit of time if it hasn't already. Then we'll go into um actually it's it's Friday, so take that back. We'll go into the weekend. But as long as the closes effectively above this resistance line are at I am strongly under the belief that we will see follow through next week and much higher pricing. Yes. >> Okay. So we saw that target that 3473. I mean where's the the new line in the sand for support if this move starts to pull back a little bit? >> Well, you know support is a funny character. Right now the hard support's at uh 3357. It's based upon this low. Um, resistance has been descending in terms of the trend line. So, resistance has been coming down and this will become the new support line once we get that clear break, which we have, but it's just above it. It's not strongly above it. I would expect that to happen over the next few trading days. Yeah. >> Wow. So, we're going up to 35 again, huh? Just uh wild ride on this train. Okay. Well, let's uh let's talk about gold's more volatile cousin, silver. Our last discussion, you said that when silver was uh I think when silver is running, it tends to outperform gold, I think, is what you said. Now, we're certainly seeing that today as we speak, spot silver's up nearly one to 1.3%. I think almost double the gain in gold. And with the prices now breaking convincingly above $39 an ounce, is silver confirming gold strength and maybe leading the charge higher here? Well, it's been lagging behind gold, obviously. This, of course, is a daily. And what I was looking at, and I'll flash it back, was a monthly. So, you can see the performance this month from 3748 up to 3972. Quite a move uh 2.42%, excuse me, $242 up 6 and a half% >> over the month. And the thing is is that this red line was drawn in yesterday uh because that's where silver had closed yesterday. And so we have not seen these prices really since February 2013. So we've not only taken out the big big um problem that we had with silver at 3,300. There was such strong technical resistance. There was also technical resistance at about 35, but it just sailed through there. And we'll go back to a uh daily chart so we can get a better idea of what we're looking at. $40 is our next anticipated level. We could encounter resistance. I'm not really expecting any real resistance there. Uh our studies right now are looking for $42 on the upside. And it is based upon not a daily but rather a monthly and and so that's the thing uh you can as I said we've got to go way far back really compress this chart before we see the last time silver seems to have locked on but the last time was uh 2014. >> Yeah. Yeah. I I was going to ask you I mean Gary you you point you pointed I think last interview you and you just mentioned it here that $42 is the next real level to watch for silver but I mean with this new renewed momentum looking at that chart I mean has has that target now moved squarely into view for the third quarter >> it's it's definitely uh the bullseye target right now could it go higher yes >> it is reacting in a much more sensitive manner uh to follow gold which it was not Um, and now we're seeing it play catch-up, so to speak. So, I wouldn't be surprised to see silver move even higher than that. And here you can see this is my upside target right there. Uh, 4230. And that's the first target. If it breaks strongly through there, 44 would be the next upside target above that >> 44. A lot of people have been waiting for that. And of course, you know, a big story, a big part of this story is the dollar. I mean, when we last spoke, you identified the 50-day simple moving average kind of that hard level of resistance for the dollar index. What does the DXY chart look like now, Gary? I mean, was the was the failure at that key level, the green light that precious metals needed to launch this latest rally? >> Uh, this is our simple 50-day moving average, and that's what we would look at for shortterm market expectations. If it's above the 50-day on a short-term basis, we are in a solid bullish demeanor. Um the 100 day is intermediate and then the long-term is the 200 day. And so I've highlighted the 200 day is in red, green is the 50-day. It melted through the the 50-day, came down and melted. you see how exaggerated the moves were on the days when it broke through the 50 as well as the um 200. And so that's significant because what that tells us is that on a technical basis, on a very long-term basis, um the dollar is extremely bearish and has more room to the downside. In terms of targets, if it continues to drop 95, I'm basing that on a Fibonacci retracement data set that begins beginning of May at 89 up to the record top that we've seen recently at 114. And then the important numbers are drawn in. This is the 78% retracement. This, of course, is our starting point. As you can see, this is the 38. This is the 50. And the fact of the matter is we're probably close to the uh we've even broken through to the 61. And in terms of corrections, 61 is a very deep correction, but acceptable. 78 is acceptable, but act actually fairly rare. And a break below 78 would mean that we're not looking at a simple correction, but a flip from a corrective expression in a bullish market uh to a fully bearish market. If we broke below 78, that would signal that. You notice also when you look at this chart, the 61.8, date. It comes down, it tests this area, it pops back up, and look, it finds resistance at the 50%. Then it comes back down, breaks through it, and you can see all of the attempts that came in. Let's go ahead and widen this. All the attempts that came in to break back above that, and all of them were unsuccessful. And because of that, that tells me the dollar absolutely has a high higher probability of going down than going up. >> Yeah. >> And the next target, as I said, would be about 95 on the dollar index. >> Interesting. Yeah. Fascinating to watch. I got to be a contrarian. I mean, couldn't this bearish dollar trade be getting a bit crowded? What's the risk if of a maybe a sharp short covering rally from these levels? And would that be the biggest threat to putting a cap on gold's breakout? >> You know, any anything is possible. >> Yeah. >> But there's been some incredibly significant traders through the ages and ones that I would watch as I was young in the industry. One of them was George Soros. His political views are not liked by many, but he's a heck of a trader. I mean, he would go in and if he believed that the Japanese yen uh was going lower, he would look for it to go lower from half a year to a two-year period. In other words, he would look for these big moves. Currencies once they start to go into like a a major rally, as we saw here, not a choppy market here, but we're getting there here. These trends tend to be defined and sustainable. In other words, the fundamental environment that cause the dollar to lose value. As long as those variables are still within the marketplace, the dollar will continue to drop. And it's dropped well below this. But right now, this 90, first we want to see it break through 95, which I believe is more than doable. It's almost as as I see it in the cards unless something changes. Um, but 90 and 89 is even probable and has a good probability of actually going out like that because you can see below that we do have this spot at 88. If I extend it further, we can find points in time when it was lower. But I think right now we can see that it was a hard break below the 61.8. That's an important number. It attempted to retake that and to rally above it to no avail. And so if it can't move back higher, the course of lease resistance right now is lower. >> Yeah. >> And so I am looking for the dollar to continue lower. Is it possible to see it be a sustained move with the currencies? Absolutely. You get to find uh trends that tend to last a good block of time. And the time that they last is going to be based upon what fundamentals were at play that move the currency higher or lower. Because as long as those events are still um present in the market, the currency will move in that direction and continue to go lower as in the case of the dollar until the variables that have brought the dollar down are no longer in uh the marketplace, are in the minds of traders or affecting the currency. And realize that the dollar index is traded against a basket of eight currencies. Of course, the weight is not equal. The euro, I believe, accounts for about 50% of that. So, you're really looking mostly at a dollar euro um chart, but there's seven other currencies that make up the dollar index. So, yeah, >> I believe that um there's a high probability that the dollar will at least go sideways, most likely go lower. >> Yeah. Interesting. Okay. Okay. Well, before I let you go, I just got to ask you. I mean, okay, we got 3473 on the gold target, 42 on silver. I mean, it doesn't just seem to be a gold story. I mean, we're we're seeing that strength across the board. Silver, platinum, palladium. Now, you don't need to show a chart of those, G, but is this a sign that maybe a major tide is lifting all boats in the precious metals se sector? I mean, does that give you more conviction in this rally? Well, the conviction that I have is that all of the metals you talked about, gold, silver, platinum, and palladium are paired against the dollar. So, there's going to be an effect, a strong effect if the dollar continues to move lower to move these precious metals higher on that part of the equation. There's two reasons uh that gold, silver, platinum, platium will move higher. And one is sentiment, market sentiment by market participants. And the other one is dollar strength or weakness. So when you have a scenario in which the dollar has been exceedingly weak since the beginning of the year was at 109, now it is at 97. It's lost, you know, over 17% this year alone. >> Yeah. Yeah. A huge a huge amount. All right, Gary, we have to leave it there. Fantastic insights as always. It seems the key takeaway is that the bulls are back in control, but discipline here is really critical. Huh. >> Well, discipline's always critical, but be aware that just because, for example, with gold, you have a marketplace that is near the all-time record highs, doesn't necessarily mean that it's time to sell into it or exit. Um, you've got to pick your spots carefully. Look at the range that's there, which is why this was a perfect setup because you had the compression triangle series of rallies and corrections. So, you could position yourself if you wanted to go long at the beginning of these particular rallies. Um, don't co um count gold out yet. My upper level target uh whether it's the end of this year, first quarter of next, and things are moving is $3,700 plus uh for for a troy ounce of gold. >> Yeah. >> So, I am quite bullish and I believe that there's tremendous room to the upside still. >> It's not over. >> Yeah. Well said. My brain is officially full of moving averages for the day. Uh I'm going to need a minute to take that all in because still some great moves here on the upside. Fantastic analysis as always. Thanks for joining us, Gary. >> Great to be here. Very good to be here. >> All right, that was Gary Wagner, editor of the gold forecast.com. Now, for the latest charts and analysis, head right here to kick news at kicko.com. And of course, don't forget to subscribe right here uh for more expert interviews and realtime analysis. Drop a comment below with your price target for gold. We'll be reading them for chart this. I'm Jerry Sapper. We'll see you next time. [Music]
Gold's 'Symmetrical Triangle' Breakout is Confirmed, Here's the Next Target | Gary Wagner
Summary
Transcript
[Music] All right, welcome back to Chart This. It's been a minute, but we're back. I'm Jeremy Saffron. Now, gold bulls are back in the driver's seat. After weeks of consolidation, a powerful breakout has changed the narrative, pushing prices to levels we haven't seen since the summer highs. Now, the question is, is this move for real? Here to break down the charts and tell us where we go from here is one of the best technical analysts in the business, our very own Gary Wagner, editor of the goldfor.com. Gary, have a good summer, man. Has it been? We missed you. >> It has been great and it's great to be back. And more than that, what a time to be back. I think that we've got a lot to share with our viewers and I think we're up for exciting times ahead and we've had some excitement already. So, um, it's kind of adding fuel to the fire. I'm really excited about where I think gold's going to head to. >> Okay. Well, let's get into that then. I mean, the last time you were here, you were a little bit cautious. You said that gold slipped below its 50-day moving average was a little bit alarming on a technical basis, but this week you signaled a major bullish development, a breakout in gold breaking above that compression china triangle. So, pull up the charts, walk us through what changed. What was the signal that flipped you from cautious to bullish? >> Absolutely. We are looking at a uh daily Japanese candlestick chart. And of course, I'm using a combination of studies, but basically trend analysis, Elliot wave, and pattern recognition such as this symmetrical triangle that we're witnessing. And what we notice is we've had a runaway bull market. If we move it back a little bit, you can see that as you know, we're sitting at 2300 in March of 2024. Not too much to move it to 3,200, 3,400. So, we've got a thousand and then it runs up to the all-time record intraday high well above 3500. Uh viewers, I am looking at a futures chart. So, the numbers will be a little bit different than spot. >> Um and then we knew at least our model predicted we were headed for a correction and that's what I thought we would see. But typically in a correction you get something like an A, a B, and then a C. And then you go back to the motive phase, a five count of bullish waves 1, three, and five. In between you get corrective waves two and four. But what happened was when we saw the market go up and hit this top, we had already drawn in the compression triangle and come down. We realized that this was not unfolding as a simple ABC, but something a little bit more complex. This is simply called a symmetrical triangle. The idea behind the symmetrical triangle, of course, is you're going to have a series of rallies followed by a series of shallow corrections, shallow rallies until you typically get to the E-wave. Following the E-wave as the model predicts and not so well this time you get what's called a thrust. A thrust is simply when prices break above that's the wrong one but is simply when prices break above the resistance line and and you get that hardcore breakout. We certainly didn't see that. And so we watched gold go back into the channel. Let me just kind of blow this up a little bit. uh go back into the channel and trade back down to the lower end of the channel. At this point, we realized since it did not occur here, meaning a thrust or a breakout, this would be if it's going to do it at all, this would be the time. This is when we got our subscribers long at about 3410. We had enough confidence that it's probably not going to break to the downside because Jeremy, a symmetrical triangle doesn't necessitate a breakout to the upside or the downside. Either can happen. Typically, we see it go to the prevalent trend direction, which of course is higher. And that's exactly what we saw. Now, today we're right at the resistance line. >> I hope our viewers can see it. I'll blow it up a little bit more. But as you can see, we've just gone over that a little bit. And so this was the breakout that I have been waiting for. And I believe that a solid close above, let's call it 3473 will signal that we are going to see a strong breakout to the upside. moving gold substantially higher even though it's already traveled from 3358 to 3478. So, it's gone a significant amount, but we think that there's a lot more room to the upside right now as long as we get an effective close above this resistance line, which it clearly looks as though that's a highly probable outcome. >> Yeah, what a fascinating setup, Garren. I mean, it has been all year. You noted that your clients went long on Monday at 3410. Uh in the futures market, I I guess here on the spot side, we're seeing gold pushing the highs of the day though, trading firmly in 3415, 3420 range. I mean, from a technical perspective, is this precisely the kind of price action you'd want to see to confirm that Monday's breakout is holding that old resistance and now becoming new support? >> Absolutely. Absolutely. the fact that when it did not break out where we had anticipated that it would this E-wave and came back down to the channel, we knew if this pattern was going to bear fruit, uh it would occur during the next rally, which is why we actually positioned ourselves early on in this rally. But the confirmation will come as the market closes today, which is in New York in just a little bit of time if it hasn't already. Then we'll go into um actually it's it's Friday, so take that back. We'll go into the weekend. But as long as the closes effectively above this resistance line are at I am strongly under the belief that we will see follow through next week and much higher pricing. Yes. >> Okay. So we saw that target that 3473. I mean where's the the new line in the sand for support if this move starts to pull back a little bit? >> Well, you know support is a funny character. Right now the hard support's at uh 3357. It's based upon this low. Um, resistance has been descending in terms of the trend line. So, resistance has been coming down and this will become the new support line once we get that clear break, which we have, but it's just above it. It's not strongly above it. I would expect that to happen over the next few trading days. Yeah. >> Wow. So, we're going up to 35 again, huh? Just uh wild ride on this train. Okay. Well, let's uh let's talk about gold's more volatile cousin, silver. Our last discussion, you said that when silver was uh I think when silver is running, it tends to outperform gold, I think, is what you said. Now, we're certainly seeing that today as we speak, spot silver's up nearly one to 1.3%. I think almost double the gain in gold. And with the prices now breaking convincingly above $39 an ounce, is silver confirming gold strength and maybe leading the charge higher here? Well, it's been lagging behind gold, obviously. This, of course, is a daily. And what I was looking at, and I'll flash it back, was a monthly. So, you can see the performance this month from 3748 up to 3972. Quite a move uh 2.42%, excuse me, $242 up 6 and a half% >> over the month. And the thing is is that this red line was drawn in yesterday uh because that's where silver had closed yesterday. And so we have not seen these prices really since February 2013. So we've not only taken out the big big um problem that we had with silver at 3,300. There was such strong technical resistance. There was also technical resistance at about 35, but it just sailed through there. And we'll go back to a uh daily chart so we can get a better idea of what we're looking at. $40 is our next anticipated level. We could encounter resistance. I'm not really expecting any real resistance there. Uh our studies right now are looking for $42 on the upside. And it is based upon not a daily but rather a monthly and and so that's the thing uh you can as I said we've got to go way far back really compress this chart before we see the last time silver seems to have locked on but the last time was uh 2014. >> Yeah. Yeah. I I was going to ask you I mean Gary you you point you pointed I think last interview you and you just mentioned it here that $42 is the next real level to watch for silver but I mean with this new renewed momentum looking at that chart I mean has has that target now moved squarely into view for the third quarter >> it's it's definitely uh the bullseye target right now could it go higher yes >> it is reacting in a much more sensitive manner uh to follow gold which it was not Um, and now we're seeing it play catch-up, so to speak. So, I wouldn't be surprised to see silver move even higher than that. And here you can see this is my upside target right there. Uh, 4230. And that's the first target. If it breaks strongly through there, 44 would be the next upside target above that >> 44. A lot of people have been waiting for that. And of course, you know, a big story, a big part of this story is the dollar. I mean, when we last spoke, you identified the 50-day simple moving average kind of that hard level of resistance for the dollar index. What does the DXY chart look like now, Gary? I mean, was the was the failure at that key level, the green light that precious metals needed to launch this latest rally? >> Uh, this is our simple 50-day moving average, and that's what we would look at for shortterm market expectations. If it's above the 50-day on a short-term basis, we are in a solid bullish demeanor. Um the 100 day is intermediate and then the long-term is the 200 day. And so I've highlighted the 200 day is in red, green is the 50-day. It melted through the the 50-day, came down and melted. you see how exaggerated the moves were on the days when it broke through the 50 as well as the um 200. And so that's significant because what that tells us is that on a technical basis, on a very long-term basis, um the dollar is extremely bearish and has more room to the downside. In terms of targets, if it continues to drop 95, I'm basing that on a Fibonacci retracement data set that begins beginning of May at 89 up to the record top that we've seen recently at 114. And then the important numbers are drawn in. This is the 78% retracement. This, of course, is our starting point. As you can see, this is the 38. This is the 50. And the fact of the matter is we're probably close to the uh we've even broken through to the 61. And in terms of corrections, 61 is a very deep correction, but acceptable. 78 is acceptable, but act actually fairly rare. And a break below 78 would mean that we're not looking at a simple correction, but a flip from a corrective expression in a bullish market uh to a fully bearish market. If we broke below 78, that would signal that. You notice also when you look at this chart, the 61.8, date. It comes down, it tests this area, it pops back up, and look, it finds resistance at the 50%. Then it comes back down, breaks through it, and you can see all of the attempts that came in. Let's go ahead and widen this. All the attempts that came in to break back above that, and all of them were unsuccessful. And because of that, that tells me the dollar absolutely has a high higher probability of going down than going up. >> Yeah. >> And the next target, as I said, would be about 95 on the dollar index. >> Interesting. Yeah. Fascinating to watch. I got to be a contrarian. I mean, couldn't this bearish dollar trade be getting a bit crowded? What's the risk if of a maybe a sharp short covering rally from these levels? And would that be the biggest threat to putting a cap on gold's breakout? >> You know, any anything is possible. >> Yeah. >> But there's been some incredibly significant traders through the ages and ones that I would watch as I was young in the industry. One of them was George Soros. His political views are not liked by many, but he's a heck of a trader. I mean, he would go in and if he believed that the Japanese yen uh was going lower, he would look for it to go lower from half a year to a two-year period. In other words, he would look for these big moves. Currencies once they start to go into like a a major rally, as we saw here, not a choppy market here, but we're getting there here. These trends tend to be defined and sustainable. In other words, the fundamental environment that cause the dollar to lose value. As long as those variables are still within the marketplace, the dollar will continue to drop. And it's dropped well below this. But right now, this 90, first we want to see it break through 95, which I believe is more than doable. It's almost as as I see it in the cards unless something changes. Um, but 90 and 89 is even probable and has a good probability of actually going out like that because you can see below that we do have this spot at 88. If I extend it further, we can find points in time when it was lower. But I think right now we can see that it was a hard break below the 61.8. That's an important number. It attempted to retake that and to rally above it to no avail. And so if it can't move back higher, the course of lease resistance right now is lower. >> Yeah. >> And so I am looking for the dollar to continue lower. Is it possible to see it be a sustained move with the currencies? Absolutely. You get to find uh trends that tend to last a good block of time. And the time that they last is going to be based upon what fundamentals were at play that move the currency higher or lower. Because as long as those events are still um present in the market, the currency will move in that direction and continue to go lower as in the case of the dollar until the variables that have brought the dollar down are no longer in uh the marketplace, are in the minds of traders or affecting the currency. And realize that the dollar index is traded against a basket of eight currencies. Of course, the weight is not equal. The euro, I believe, accounts for about 50% of that. So, you're really looking mostly at a dollar euro um chart, but there's seven other currencies that make up the dollar index. So, yeah, >> I believe that um there's a high probability that the dollar will at least go sideways, most likely go lower. >> Yeah. Interesting. Okay. Okay. Well, before I let you go, I just got to ask you. I mean, okay, we got 3473 on the gold target, 42 on silver. I mean, it doesn't just seem to be a gold story. I mean, we're we're seeing that strength across the board. Silver, platinum, palladium. Now, you don't need to show a chart of those, G, but is this a sign that maybe a major tide is lifting all boats in the precious metals se sector? I mean, does that give you more conviction in this rally? Well, the conviction that I have is that all of the metals you talked about, gold, silver, platinum, and palladium are paired against the dollar. So, there's going to be an effect, a strong effect if the dollar continues to move lower to move these precious metals higher on that part of the equation. There's two reasons uh that gold, silver, platinum, platium will move higher. And one is sentiment, market sentiment by market participants. And the other one is dollar strength or weakness. So when you have a scenario in which the dollar has been exceedingly weak since the beginning of the year was at 109, now it is at 97. It's lost, you know, over 17% this year alone. >> Yeah. Yeah. A huge a huge amount. All right, Gary, we have to leave it there. Fantastic insights as always. It seems the key takeaway is that the bulls are back in control, but discipline here is really critical. Huh. >> Well, discipline's always critical, but be aware that just because, for example, with gold, you have a marketplace that is near the all-time record highs, doesn't necessarily mean that it's time to sell into it or exit. Um, you've got to pick your spots carefully. Look at the range that's there, which is why this was a perfect setup because you had the compression triangle series of rallies and corrections. So, you could position yourself if you wanted to go long at the beginning of these particular rallies. Um, don't co um count gold out yet. My upper level target uh whether it's the end of this year, first quarter of next, and things are moving is $3,700 plus uh for for a troy ounce of gold. >> Yeah. >> So, I am quite bullish and I believe that there's tremendous room to the upside still. >> It's not over. >> Yeah. Well said. My brain is officially full of moving averages for the day. Uh I'm going to need a minute to take that all in because still some great moves here on the upside. Fantastic analysis as always. Thanks for joining us, Gary. >> Great to be here. Very good to be here. >> All right, that was Gary Wagner, editor of the gold forecast.com. Now, for the latest charts and analysis, head right here to kick news at kicko.com. And of course, don't forget to subscribe right here uh for more expert interviews and realtime analysis. Drop a comment below with your price target for gold. We'll be reading them for chart this. I'm Jerry Sapper. We'll see you next time. [Music]