We usually talk about gold and publish our proprietary gold analysis tool, the TrendStrength Meter for gold's short term trends... But with what's happening on the silver market right now, we feel obliged to publish our analysis for silver in USD.
According to our TrendStrength Meter:
- Short term trend is down since 4/17/2017
- Medium term trend is down since 4/9/2017
- Long term trend is showing signs of reversing down anytime soon!!!
Short term egoldfx TrendStrength Meter shows that the USD bounced below level 3 (1) which is a signal that the USD will recover and gain strength, which is the case right now...
Medium term egoldfx TrendStrength Meter shows that both USD and silver have bounced respectively on level 3 and level 7 (2) indicating that silver will lose strength while the USD will gain strength, which is also the case...
Finally, silver on the long term egoldfx TrendStrength Meter is showing that gold's strength has topped (3) and should start to weaken in the months to come, unless a major geopolitical event happens which will keep silver's strength ranging above or near the level 7 line.
What we can conclude is that short term and medium term weaknesses of silver in USD is mostly due to USD strength while long term, any new downtrend will be the result of a weakening demand for silver.