Gold Surges After the Bernank
The SPDR Gold Shares(NYSE:GLD) have soared higher after the Federal Reserve said they will keep the Fed funds rates at zero percent until 2013. In other words, the central bank will keep rates as low as they can. The GLD is trading higher by $4.93 to $172.12 a share. Traders and investors should note that spot gold and the GLD are very extended and overbought on the daily charts. Therefore, traders should not rule out a near term pullback soon despite all of the money creation by the central banks.
Silver is not following gold at this time. The iShares Silver Trust is trading lower by $1.00 to $36.96 a share. Often silver will follow gold very closely, however, silver seems to be trading lower with the industrial metals such as copper, iron, and steel. Short term traders should watch for intra-day support on SLV around the $36.00 area.