US Dollar and Fed’s Next Move Continue to Tarnish Silver Prices

Summary: Gold’s inverse relationship with the U.S. dollar are dragging silver according to this analysis from Silver Investing News. Stronger than expected GDP and employment numbers, along with a rally in equity markets like the Dow and Nasdaq, have led to speculation that the Fed will begin tapering its stimulus program known as Quantitative Easing. Although many Fed officials have signaled they’re in no hurry to begin tapering, sentiment in silver’s paper markets are still cautious. Many ETF investors believe the improving economic data is a signal that the Fed will change its mind and begin tapering as soon as its December meeting. Although many investors are pulling out of the paper-based markets (…like ETFs), physical demand remains robust. In fact, sales of the American Silver Eagle broke new records recently. In China and other Asian economies, both gold and silver have enjoyed very strong demand. Read more…