Gold / Silver - let's survey the damage!

Gold:

Gold is no where near breaking it's major up trend despite the falls over the last few days. There is a minor trend (light green) that has also not broken and might act as a supporting bounce zone for Gold. Silver appears to be where the concluding chapter is being written, so lets take a look.

Silver:

A further smash down today has failed to break the upward support line of the consolidating wedge. We can see that as the wedge narrows the volatility is increasing somewhat. I expect that we might see a bounce tomorrow as the price hits the support line and some buyers move in.

Geopolitical

All the news impacting the metals appears the escalating US / China trade which is providing strength for the dollar. The dollar appears to be defying all logic as it continues to rise, but China is yet to retaliate. A strong dollar means lower exports and higher imports which is exactly what Trump does not want. So it remains to be seen what Geopolitical action will play out but my feeling is that it will not be good for the dollar in the medium to long term. The bounce may continue for a time, but I don't think we can expect new highs in the dollar. At some point US debts will come home to roost and the dollar will be toast. As for Gold and Silver, do you have any?

A word on cryptos

I note that some of the popular YouTube silver / gold pumpers of the last few years are now so called crypto experts. In a few years I expect that they will be long gone as many cryptos correct to their residual value (zero). The entire business model for pure cryptocurrency is flawed. Bitcoin for example is limited in the number of coins that can be produced, but there are hundreds of competitors that arguably offer better technology, which completely disassembles the scarcity argument. A Cryptocurrency might well emerge but it will likely be a government standard that allows full transparency over transactions. The money to be made in the crypto market is seeking out technologically innovative crypto's that offer utility such as smart contracts, loyalty tokens, internet of things fabric, asset management and other interesting applications of the blockchain. For wealth protection during difficult times gold (and silver) have always been the asset of first choice and that is not likely to change in the future.

For disclosure, I'm not a professional financial advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.