I sit down with Craig Hemke of Sprott Money to talk about our Precious Metals forecast, latest moves, and this year’s projections.

From a long standpoint, the dollar index has covered a huge range. From a shorter-term view, the dollar has put in what looks to be a double bottom, rounding formation, and a series of bull flags. When there is fear in the market we tend to see the US Dollar rally as a cash safe haven. This week, we are starting to see some good traction with the US Dollar.

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Gold serves as a global safe haven – it’s driven by countries that believe in physical metal. Though it can sometimes trend along the same lines as the US dollar, this is not always the case. Ideally, we want to see Gold break through the pivot point of $1800. The question remains, when will it finally break up to the upside?

Bonds have been trading sideways for a while now, and there is not much indication that this will change within the next few months. We saw this pattern back in 2008 when everyone piled into Bonds as a safe haven play, opting to avoid the stocks due to the financial crisis. So where did the money go? People invested in precious metals. The charts are now indicating a rinse and repeat may be forming.

Silver has recently moved above some key moving averages. We are seeing higher highs and higher lows indicating a new uptrend may be beginning. For a short-term trend, we have a nice bull flag forming. A good sign now would be to see a consolidation before it continues to gain traction.

Overall, the precious metals market is at a pretty big turning point. It will be very interesting to see how precious metals and miners move going forward.

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