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<\/div>\nOn the chart, we can see that the dollar has lost the support<\/a> of its 50-day moving average<\/a> (MA – blue line). The 9-day exponential moving average<\/a> (EMA – red line) has crossed below the 50-day MA, and the 20-day EMA (green line) is on the verge of doing the same thing.<\/p>\n This is all quite bearish<\/a> for the buck. And since precious metals often trade counter to the dollar, it’s a big reason why gold and silver rallied last week.<\/p>\n This is a trend that should continue for most of 2022.<\/p>\n But, here’s the curious thing…<\/p>\n The Fed is expected to raise interest rates several times this year. And rising rates are supposed to be bullish<\/a> for the dollar. At least, that’s what all the economic textbooks say.<\/p>\n Yet, the chart of the buck looks bearish.<\/p>\n My guess is the strength of the dollar over the past few months was due to the anticipation of the Fed embarking on a tighter monetary policy. And now that it appears the Fed is going down that path, the dollar is being “sold on the news.”<\/p>\n And, a falling dollar is bullish for gold and silver.<\/p>\n Of course, gold and silver – and gold and silver stocks – have been hugely frustrating to trade over the past year. And, that frustration has likely turned off many participants.<\/p>\n But that’s what the financial market does. It shakes folks out of positions before it makes the “logical” rally.<\/p>\n I can’t tell you the number of logic-based trades I’ve taken a bath on before the market finally came around to my way of thinking – it’s in the hundreds<\/em>.<\/p>\n
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