Silver rises again to $ 27.50 as the market bets on inflation and the US dollar falls

• The silver prices they have risen in recent trades as the dollar is under pressure and inflation expectations rise.
• The price of the pair have risen around the mark of the $ 27.50, whereas before they were closer to the $ 27.00.

The price of silver (XAG / USD) has remained higher in recent trades, amid a combination of a weak US dollar and a market that has been aggressively betting on higher inflation going forward.

XAG / USD rallied above the $ 27.00 level early in the Asian session on Monday, but then lost momentum and proceeded to consolidate around the important psychological level, until the arrival of US traders; Since 11:00 GMT, the precious metal has risen steadily again, rebounding just above $ 27.00 to record daily highs above $ 27.50. At this time, the XAG / USD is trading just below the $ 27.50 mark and is up a 2.0% or just over 50 cents a day.

Markets are betting on reflation

Since the precious metals are considered the ultimate hedge against inflation (that is, when fiat money loses value over time, the face value of precious metals often increases to compensate for it), higher inflation expectations are providing an advantage to the precious metals market . Silver, gold, palladium and platinum posted strong gains on Monday.

On the other hand, another favorable factor for gold has been the fall of the US dollar; in the last operations, the íDollar Index (DXY) has fallen below the level of 91.00, although the losses remain contained around the 0.1% during the day for now. Given the negative correlation that precious metals, such as silver, have with the dollar, this is also providing some support.