Can You Forecast The Direction Of Gold & Silver? Yes, Here's How

There have been two significant rallies in the price of silver in the last 50 years but the US Dollar Index was in serious decline during both occurrences and that is not the case today.

As the chart below shows, the USD Index has been in an unrelenting uptrend for the past 2 years (+3.8%) except for a blip in mid-March. 

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Silver, on the other hand, despite the recent hype, silver has been slowly declining in price over the same 2-year period (-9.2%).

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A look at the USD Index-to-Silver Ratio below shows a choppy trend in which, when the price of silver is low the USD Index to Silver Ratio is high and vice versa.

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Conclusion

Tracking the direction the USDollar Index is trending indicates which way gold and silver prices will likely go. The bottom line is that the $USD Index is showing no sign of collapse and that is restricting any significant appreciation in the price of silver.