Dollar Rally Triggers Silver Sell-Off
COMEX silver futures have been hit hard on Wednesday, falling 5.71% to $27.10. The iShares Silver Trust ETF (NYSE: SLV) has lost 5.27% to $26.40 on heavier than usual volume. More than 23.5 million SLV shares have traded hands compared to a 3-month daily average of 21.3 million. The next support level that long-term buyers may want to look at is between $25.00 and $26.20 in silver futures.
The catalyst for the move lower has been a rally in the U.S. Dollar. Dollar Index futures have surged 0.96% to $80.905 while the PowerShares DB US Dollar Index Bullish ETF (NYSE: UUP), which tracks the performance of the greenback versus a basket of foreign currencies, has risen 0.90% to $22.54.
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