The SPDR Gold Shares(NYSE:GLD) caught a strong bid at the open on the back of the weak U.S. Dollar Index. When the U.S. Dollar declines everything in the stock market especially precious metals and commodities will usually spike higher. That is the case this morning as the GLD is trading higher by 0.80 cents to $130.33. There will be intra-day resistance for the GLD around the $133.80- $131.00 area.
The iShares Silver Trust(NYSE:SLV) is also trading higher this morning by 0.15 cents to $23.22. Silver will often trade much like gold and should trade higher on the back of a weaker U.S. Dollar Index. SLV will have intra-day resistance around the $23.30 level.
The precious metal trade is really all about the U.S. Dollar Index. Always watch the U.S. Dollar Index for potential bounces as a move higher in the dollar will cause gold, silver, and most other commodities to pullback.
