The USD made a big move upward today as investors were fleeing the Euro amid renewed concerns about the Greek debt crisis. Commodities across the board were hit hard today, with silver and crude oil taking the major brunt. Silver found support at the $35 level and traded in a sideways range for much of the day. This chart shows the US Dollar and Silver prices overlaid, showing the reversing mirror-effect a rising dollar has on the price of silver. The second graph is the price of silver overlaid with the Euro chart, showing how they fell in tandem today versus the dollar.
It is refreshing to see someone finally point out that the rally in the dollar has been a major driving force behind the pullback in silver. So many of the talking heads and so-called “experts” just go on and on preaching about how another speculative bubble is bursting. It surprises me just how many people that call themselves silver traders or investors don’t understand this fundamental relationship. I’ve been ponting that out on a number of charts recently when discussing potential trade set-ups. Anyway, I always enjoy reading what other commodities traders have to say so I’ll be adding this to my list of regular reads!
Thanks for your informative web site.
You must spent a lot of time writing posts on your website