The above chart tells a spectacular story.
Silver peaked on Monday April 25 at 49.83, just cents short of its all time high from 1980.
Through to the end of April, gold, stocks, EUR/USD, GBP/USD & AUD/USD all marched higher, but silver did not. I considered this divergence significant enough to comment on it three times (here, here, and here).
In the first hour of the first trading day of May, Silver fell from a high of 47.18, to a low of 42.22, a decline of greater than 10% within one hour.
By May 12, silver had fallen to a low of 32.34, a decline of 35% from the April 25 peak, within the space of three weeks.
Silver now appears to be starting another move lower, after almost a month and a half of trading within a corrective trend channel. The chart shows that the market has broken the trend line drawn from the point the silver bubble began, in August last year.
A new move lower in silver is of itself interesting to me as a trader, but even more so given that silver's plunge in early May coincided with the turn lower in gold, stocks and the AUD/USD, GBP/USD, followed a few days later by the EUR/USD. More broadly, silver's plunge in early May coincided with a strengthening of the USD against almost everything that is not a USD.
Might the likely renewed move lower in silver imply a likely renewed move lower in the above markets, and more generally, a new move higher by the USD against everything that is not a USD?