Now that the impact of the US-Iran situation is apparently absorbed by the financial community, we can look at its effects on silver and see if they tell us anything.
And they sure do. Here’s a very simple 3-month chart of SLV, the unleveraged US silver ETF that trades on US markets.
If we look at the relationship between the US Dollar index UUP (blue line) and SLV (the candlesticks), we can see that most of the time they trade in “good inverse relation” to each other. Meaning over 2 or 3 days, a move in one is mirrored by an opposite move by the other. Sure, there are single days where both go up, or both go down. But in general, they follow the common rule of precious metals trading inversely to the local currency.