The price of Silver and Gold are currently being driven higher as the US Dollar Index falls beneath the previous support at just under 79. This level has been tested several times over the past 6 weeks.
The next level of support for the USDX appears to be 78 (assuming that the current break below support holds).
It will be interesting to see where it ends up over the next several trading sessions and what effect this will have on Gold/Silver. When there is no flight to safety (in which case sometimes Gold/USD rise together), generally speaking the Dollar and Gold/Silver have an inverse relationship, that is when the USD rises the metals drop and visa versa. So this move down for the Dollar is positive for the metals.
A lot of commentators are calling for the price of Silver to continue the correction that has been playing out the past couple of weeks, however with support at $28 having been respected I suspect the bottom is in and that we will soon be seeing new 30 year highs for this metal. As they say, you should be greedy when others are fearful, hope you bought the dip!
Disclosure: Position held in Silver and Gold. Not investment advice. Do your own research.