Can Silver Price Turn Count Draghi-ula's Monster?

London (Oct 22)  Summary• A rumor several weeks ago about the possible conclusion of the ECB’s quantitative easing program gave short-lived life to the euro versus the dollar, and precious metals benefited temporarily.

•Otherwise, tangibly driven dollar strength had been weighing against silver.

•This past week, anticipation of the ECB meeting, where rumor might become reality, allowed silver and gold to edge higher.

•Chairman Draghi put a halt to the gains, but kept uncertainty alive by guiding investors to the ECB’s December meeting.

•If the ECB ends up following through with even a gradual tapering of its quantitative easing program (a big if), holding all other factors constant, silver could turn higher.

Silver was doing alright this week until the fear of Draghi got into it. The European Central Bank (ECB) Chair addressed investors and everyone else after the latest ECB decision Thursday. The ECB message allowed the euro to edge lower again versus the dollar, and that halted this week's silver and gold gains. However, Count Draghi-ula's monster is undead, and thanks to his iteration, it will be back again by December.

U.S. dollar strength (silver weakness) has been benefiting from some credible issues weighing against Europe. Notable among the real factors at play over the last few weeks was the dedication of an effective date for the process of Brexit to begin. Currency traders suddenly discovered that March 2017 was when the messy separation with Europe would start. The issue caused severe depreciation in the British Pound over the last several weeks and also notable depreciation of the euro to the dollar. As we know, the dollar matters for silver and for gold, which I discussed in my report linked to here:

Source: SeekingAlpha