But today, all of those internal signals take a back seat to one thing.
The dollar.
When the greenback makes big moves, it tends to ripple through every major asset class. Commodities, international equities, emerging markets, and, of course, precious metals all feel the impact.
That’s exactly where we are right now.
The US Dollar Index is testing 100, and that’s the line in the sand. It’s the level that will likely determine whether this precious metals bull market continues to expand… or whether we’re about to enter a much more challenging environment for the trade.
You can see just how important this level is when you look at the key intermarket ratios inside the metals space.
One of the most important right now is the Gold Rush Junior Miners Index relative to the Gold Rush Miners Index.
In simple terms, this ratio measures risk appetite within precious metals stocks.
When junior miners outperform the big miners, it signals expanding risk appetite and healthy bull market conditions. Investors are willing to move further out on the risk curve and chase the higher-beta names.
But when the ratio falls, it tells a different story. It means investors are rotating toward the larger, more defensive miners, and risk appetite is starting to contract.
That’s exactly what we’re watching unfold right now.
You need to have a subscription to access this content in full.
Log in or subscribe today to unlock new features and receive Member Benefits.
