🥈 Silver was the biggest loser among key commodities last week, declining 14%. Is this just a correction or a beginning of the bear market?
Precious metals have been under pressure lately despite extremely dovish Fed. The key reason is US dollar. The US currency was under huge pressure during the summer but has been recovering lately, applying downward pressure on precious metals – especially Silver.
What’s next? The key fundamental reason behind silver – accommodative monetary policy – is still there and will continue for a long time. USD gains are mostly technical and could be temporary. Looking on the chart, the next support line could be found just below $22 (150day moving average).
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