Gold and Silver Paint A Picture
Gold and silver are both trading higher today despite the U.S. Dollar Index trading in positive territory. Today, there is a lot of uncertainty developing in the Middle East. Protests and riots are now beginning to develop in various parts of that region. Egypt is still experiencing a large number of protesters despite the removal of Hosni Mubarak. Algeria, Saudi Arabia, and Iran, are all beginning to face protests from their citizens creating further turmoil in the region.
Europe has not been mentioned much in the media today, however, the CurrencyShares Euro Trust(NYSE:FXE) is trading lower today by 0.67 cents to $134.32 a share. When the Euro currency trades lower it will usually indicate that the U.S. Dollar Index is trading higher. Last week the European Central Bank had to purchase Portuguese bonds in order to keep the rising yields contained. Traders should expect more of this type of action by the ECB in the coming weeks. These are all events that can cause gold and silver to rise in the near term.
Today the SPDR Gold Trust ETF(NYSE:GLD) is trading higher today by 0.86 cents to $133.17 a share. The popular iShares Silver Trust ETF(NYSE:SLV) is trading higher by 0.69 cents to $29.90 a share. These precious metals will usually increase when there is conflict in the world or a devaluing of fiat money by central banks.