The U.S. dollar is experiencing a rare volatility squeeze, indicating that a major move is near. While the most likely direction is downward, any move will have a big impact on precious metals.

After some back-and-forth over whether gold bullion imports into the United States would be hit with tariffs, the Trump administration confirmed yesterday that they will not be. In response, spot gold fell 1.62% and spot silver dropped 1.86%.

All the pieces are falling into place for silver’s bull market to accelerate, with a breakout into the $40s now looking increasingly likely in the near term.

The U.S. Dollar Index is at a critical inflection point, and how it behaves from here will have a major impact on the direction of gold, silver, and commodities.

Though silver has been quiet lately, it’s important to be aware of the many bullish factors that are setting the stage for a strong move higher.

Inflation is caused by the growth of the money supply, and gold is a strong hedge because it rises alongside it.