The correlation between Silver and the US Dollar Index (DXY) is generally strongly negative. This means that when the DXY rises (the dollar strengthens), silver prices tend to fall, and when the dollar weakens, silver prices usually rise.
Reasons for the Negative Correlation:
Silver is priced in US dollars: A stronger dollar makes silver more expensive in other currencies, reducing demand and lowering prices. Conversely, a weaker dollar makes silver cheaper internationally, boosting demand and prices.
Safe-haven and inflation hedge: Silver, like gold, is often sought during times of dollar weakness, inflation concerns, or geopolitical uncertainty.
Supporting Details from Recent Analysis:
Silver prices have a strong inverse relationship with the DXY,the Historical trends show silver outperforming during sustained dollar downtrends.
Silver’s smaller market size and greater volatility compared to gold mean silver can experience more pronounced price moves in response to dollar fluctuations.
Recent silver price rallies in 2025 have been supported by dollar weakness, safe-haven demand, and industrial use, with silver trading near $34.50 per ounce.
Summary Table
Factor Impact on Silver Price Explanation
DXY Strengthens Silver price tends to fall Silver becomes more expensive globally
DXY Weakens Silver price tends to rise Silver becomes cheaper internationally
Safe-haven Demand Supports silver during dollar weakness or uncertainty Investors seek precious metals as alternatives
Industrial Demand Supports silver price Silver’s use in electronics and renewable energy
Conclusion
Silver and the US Dollar Index exhibit a notable inverse correlation driven by silver’s dollar pricing and its role as a safe-haven and industrial metal. Monitoring key DXY technical levels can provide insights into potential silver price movements, with dollar weakness often heralding strong silver rallies.
#gold #silver
Reasons for the Negative Correlation:
Silver is priced in US dollars: A stronger dollar makes silver more expensive in other currencies, reducing demand and lowering prices. Conversely, a weaker dollar makes silver cheaper internationally, boosting demand and prices.
Safe-haven and inflation hedge: Silver, like gold, is often sought during times of dollar weakness, inflation concerns, or geopolitical uncertainty.
Supporting Details from Recent Analysis:
Silver prices have a strong inverse relationship with the DXY,the Historical trends show silver outperforming during sustained dollar downtrends.
Silver’s smaller market size and greater volatility compared to gold mean silver can experience more pronounced price moves in response to dollar fluctuations.
Recent silver price rallies in 2025 have been supported by dollar weakness, safe-haven demand, and industrial use, with silver trading near $34.50 per ounce.
Summary Table
Factor Impact on Silver Price Explanation
DXY Strengthens Silver price tends to fall Silver becomes more expensive globally
DXY Weakens Silver price tends to rise Silver becomes cheaper internationally
Safe-haven Demand Supports silver during dollar weakness or uncertainty Investors seek precious metals as alternatives
Industrial Demand Supports silver price Silver’s use in electronics and renewable energy
Conclusion
Silver and the US Dollar Index exhibit a notable inverse correlation driven by silver’s dollar pricing and its role as a safe-haven and industrial metal. Monitoring key DXY technical levels can provide insights into potential silver price movements, with dollar weakness often heralding strong silver rallies.
#gold #silver
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.