Silver Loses Ground to An Unstoppable Dollar – Time To Go Short
Silver plunged to five-week lows at 18.448 on the back of a strengthening U.S dollar. The greenback reached fresh 31-year highs against the British pound amid concerns over renewed Brexit related uncertainty. In general, the U.S dollar index gained 0.5% rising across the board against most currencies.
Speaking in Charleston, West Virginia on Tuesday, Federal Reserve Bank of Richmond President Jeffrey Lacker expressed a strong desire for the central bank to raise interest rates soon to avoid risks from a likely pickup in inflation.
Lacker, who is not a voting member of the FOMC this year and has no direct influence on monetary policy currently, stated that “While inflation pressures may seem a distant and theoretical concern right now, prudent preemptive action can help us avoid the hard-to-predict emergence of a situation that requires more drastic action after the fact”.
Sell Stop at 18.470, Take profit at 18.300, Stop loss at 18.600