Jim Rickards: Gold, Silver, and a May 11 Meeting to Discuss Global Currency Issues

Gold is showing a potential inverse H&S pattern.



Silver is in a well-defined uptrend.



As are the miners.

But all bets are off for the miners and silver most likely if US equities head south.



Jim Rickards on CNBC discusses the May 11th IMF meeting in Switzerland
to discuss the dollar alternatives, the SDR and gold.

And it is worth watching the reactions of the CNBC anchors to what their guests
have to say, and the elegantly polite way that Rickards deals with Joe Kernen.



It's kind of sad that after all these years Joe Kernen is Becky Quick's assistant.

Doesn't he have seniority or something? Can't Immelt throw him a bone?

US Dollar DX Index - Breakout or Fakeout? Flight to Safety

The Buck managed a big push higher through a key fibonacci retracement level today, and right to the top of the uptrending channel, largely on fresh euro weakness.

Here is where we see the breakout or the fakeout, at least in the short term.



The way in which gold is holding its level despite repeated and concentrated bear raid originating from the Comex is remarkable, and has caught much of the deflation trade by surprise.

I suspect this is because the current crisis is a sovereign debt or currency crisis, with both the dollar and gold serving as 'safe havens.' Gold continues to hit new highs in a number of non-US currencies.

SP Futures Daily Chart, Cash Weekly Chart, VIX, and the 50 DMA

A dead hit on support intraday, and a bounce back to support a little higher.

We are in our target bottom for a 'correction' now, and this is where bully must make his stand or risk violating a potential H&S neckline at 1155, with a measuring objective down to 1090 or so.

Keep an eye out for the Non-Farm Payrolls number on Friday.



VIX, the volatility index, has risen to levels not recently seen, and may be signalling at least a temporary hiatus in this decline. If you look at the topmost part of the chart you will see that the nominal SP 500 index has violated its 50 DMA. This is known as 'bad news' and bully needs to do a save here. The NFP report, if properly massaged by the reform government, might do the trick.



The SP 500 cash index weekly chart shows how important the 1150 level as trend support, and how much potential air is underneath it.