The Dollar’s Comeback Above 100 and Its Crucial Implications for Gold, Bitcoin, and Stocks

(www.investorideas.com Newswire) I have a few charts for you today, but right now there is only one that really matters: the USD index.

Yesterday, USD Index futures closed above the 100 level for the first time since May, and today’s intraday price is also the highest since May.

The breakout is even more pronounced on the cash version of the USD Index.

The price moved above 100, then moved back down slightly (held (intraday low at 100.10)) and then went up again.

The outbreak has not yet been confirmed, but it is clear that this situation is different. It’s not the emotional reactive rally we saw in May. It is also not a peaked peak that we saw in July-August.

It is a clear increase that followed several breakouts.

And a debunking of the breakdown to new annual lows in mid-September.

That day – when interest rates were cut for the first time – was the most important day. Despite all the negativity that followed (even the Fed’s independence was questioned), the USD rose like a phoenix from the ashes.

I’ve written this many times before, but it’s worth repeating: the most bullish situation for any market is when everything that could have gone wrong… already has. Or actually, it’s even better when the market fell and sentiment deteriorated despite a positive change on the fundamental front (here: rates).

We have all seen that in the case of the USD Index.

And then it recovered.

It has been recovering since the mid-September bottom, with relatively superficial corrections.

Of course, the best is yet to come.

The broad double bottom – the kind of bottom that marks the start of major rallies, including 2008 – had only just formed. The confirmation of the breakout above 100 will make it clear that the bottoming process is complete. The next price action is likely to be huge, especially if the AI-led stock market bubble bursts.

History repeats itself: 2008-style precious metals collapse possible

Notice what happened in 2008 – despite a big rally in mining stocks and silver at the time – both fell really deep (before taking off again). The roughly 500% rally in silver that followed the 2008 bottom is particularly remarkable and, as you know –
we’ll probably see something even better in silver in the future.

In the meantime, the USD index is likely to rise, and stocks could also fall dramatically.

Here’s a graph I just saw
LinkedIn.

The previous moves towards the red line (two standard deviations from the mean) have previously resulted in declines below the light green line which represents one standard deviation below the mean.

The line on the graph is not just the stock market valuation – it is the stock market valuation divided by GDP.

Yes, that’s how crazy current stock market valuations are.

Is this time different?

In a sense – yes, AI technology is revolutionary.

In another way – absolutely not. Wasn’t the Internet revolutionary? And yet, as soon as the
dotcom bubbleburst, the stock market collapsed. The value of the S&P 500 was halved. NASDAQ gave away more than 75% of its value.

As I wrote before: that’s probably the first crack in the stock AI crypto-correlated dam.

And it’s getting bigger every day.

Gold is still hesitating and waiting for signals – which will likely arrive soon.

Exactly as stated on the map.

When the USD index finally rises in a meaningful way, I doubt gold (and the rest of the precious metals sector) and commodities like copper will even be able to hold up decently.

Launch of new service – Anna’s trading lab

As you may know (if you read our
DiamondMember), we are launching a new premium newsletter on Golden Meadow® – Anna’s Trading lab.

Anna’s trading laboratory is a new newsletter that covers multiple markets: gold, silver, stocks, bitcoin and other markets where the opportunity arises. It is provided by Anna Radomskawho has successfully provided premium analytics on Golden Meadow® and in previous years on Sunshine Profits in the following products: Stock Trading Alerts, Oil Trading Alerts, Forex Trading Alerts, Oil Investment Updates, Forex Trading Alerts and Day Trading Alerts.

You can read
Welcome message from Annaand she
analyses(posted yesterday) in her space at Golden Meadow®.

I will be watching the markets closely for trading opportunities during this decline and subsequent rally (as well as during the rebound) and
I will report back to my subscribersaccordingly. This drop will most likely give us the mother of all buying opportunities – at least for silver.

Get the
“Silver is rising: 100 reasons why silver will rise”book
Silver2026.com

Thank you.

Przemyslaw K. Radomski, CFA
Founder
Golden Meadow®

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