Dollar's Rise Crushes Silver Amid Cheaper Oil
The US Dollar Index (DXY) has been on the rise, reaching new recovery highs despite six consecutive days of cheaper crude oil. This is causing pressure on silver prices, which are trading lower early Wednesday.
The DXY cleared 100.561 Tuesday and reached 100.667 before giving back some gains. Silver initially bounced on this reversal but gave it back by Wednesday morning as the dollar pushed through to 100.862.
Silver buyers had expected falling oil prices to knock the dollar off its run, but that has not happened. Instead, the two-year yield is telling a more direct story for silver, with investors pricing in a more restrictive monetary policy path.
The main trend for silver is down according to the daily swing chart, and a break through $68.33 would be needed to change this trend. A move through $62.31 would reaffirm the downtrend, which could send silver into the 50-day moving average at $63.45.