The US Dollar thrived against this backdrop. The most liquid form of cash available was a natural beneficiary as financing costs spiked and market participants divested portfolios to assure access to capital and reduce exposure to breakneck volatility. An about-face reversal was triggered as the Fed rushed out a series of back-to-back easing measures, reducing funding stress.
Prices now appear to be re-engaging the downtrend. A break of rising trendline support guiding the recovery form mid-March lows now argues for a bearish pivot in the near-term directional bias.
Positioning seems to imply that a corrective upswing has run its course and downside progress is on the cusp of resumption. Immediate support is in the 13.55-82 zone. Breaking above 15.84 may neutralize selling pressure.
What this reversal may imply about broader market sentiment remains to be seen. Still, silver’s gearing toward the pro-risk, anti-USD side of the increasingly binary asset universe is eye-catching.
Renewed selling pressure may speak to a broader-based capitulation of recent optimism as markets absorb the Fed’s credit-boosting actions, refocusing on the dire state of the global business cycle.
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