One of the best indicators of inflation and deflation is the action in gold and silver. When gold and silver rally it is telling us that inflation is taking hold, the opposite is true when gold and silver decline. The precious metals will usually trade inverse to the U.S. Dollar Index. This morning, the U.S. Dollar Index plunged after the opening bell rang at the New York Stock Exchange. This type of action in the dollar happens very often. A falling U.S. Dollar is always beneficial to the precious metals.
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