Could Explain Why Silver Prices are Dropping

We all know that their is an inverse relationship between the strength of the US dollar and Silver and Gold Prices.


From Barchart.com
Morning Call
Todays Market Focus
February 4, 2010

"The dollar index this morning is stronger and trading at a 6-1/2 month high with the dollar/yen -0.21 yen and the euro/dollar -0.50 cents. The dollar yesterday shook off early weakness as it rallied after mid-morning and closed higher. Bullish factors included (1) strong US economic data that shows improved economic conditions after the Jan ADP employment change showed the fewest amount of jobs lost in 2 years and the Jan ISM non-manufacturing index expanded at its fastest pace in 1-1/2 years, which boosted the dollar on speculation that the dollar's interest rate differentials may strengthen if the Fed hikes interest rates sooner-than-expected." Read the entire article here.