Chart Of The Day: Precious Metals Headed For Pain?

After glancing at the chartbook this afternoon, the GSCI Precious Metals index (weekly) has caught my eye. It seems as a Fed and ECB policy decisions this week have forced a dollar shortage continuation which has sent the dollar spiraling higher to the high 94-handle.

Precious metals on Friday are puking with Silver -3.91% and Gold -1.91%. Overall, the precious metals index on a weekly basis could trigger overhead supply forcing a liquidity gap if the ascending demand line is violated. At some point, we will be heavier bidders of Silver, but I do not think the time is yet…