Euro Upmove May Lift Silver

The euro is bid up this morning versus the dollar in reaction to renewed calls by China’s Central Bank for the creation of a “super-sovereign reserve currency.”  This international “movement” by key leaders or institutions in China, Russia and the Mid-East to supplant the U.S. Dollar does not appear to be going away, and in fact might be picking up momentum. In any case, if the euro can hurdle near-term resistance at 1.4140/80, let’s expect Silver – and the iShares Silver Trust (NYSE: SLV) – as well as gold to react positively.  The attached daily chart shows the close correlation between the euro/$ and silver since March 2008.