The SPDR Gold Shares(NYSE:GLD) and the iShares Silver Trust(NYSE:SLV) are finally pulling back today. The pullback in the precious metals come as the U.S. Dollar Index catches a small bid higher. Since the U.S. Dollar Index began it’s steep decline both gold and silver have rallied sharply. These precious metals are short term overbought and extended on the charts, therefore, a pullback is really just a healthy sign.
Remember anything that goes straight up without a pullback is usually a bubble. Gold and silver do not have any signs of being a bubble at this time. As long as the central banks around the world continue to print more money gold and silver should ultimately trade higher. The GLD will have short term intra-day support around the $132.70 and $132.00 levels.
