Precious Metals Shine Early
This morning, the precious metals are all trading sharply higher. The catalyst for the rally in gold and silver is the European Union bailout plan. Traders should be aware that if this European Union bailout plan turns out to be a hoax the major stock indexes and the precious metals could decline again. At this time, the move higher in the precious metals are signaling inflation in the markets and the economy.
The SPDR Gold Shares (NYSE:GLD) are trading higher by $3.90 to $161.55 a share. Traders should watch for intra-day resistance around the $162.00 and $164.50 levels. The intra-day support levels for the GLD will be around the $158.00 area.
Silver is also trading sharply higher this morning. The iShares Silver Trust (NYSE:SLV) is trading higher by $1.81 to $31.58 a share. Traders can watch for intra-day resistance around the $32.00 and $32.50 levels. The SLV will have intra-day support around the $29.75 area.
Many of the leading gold mining stocks are trading higher. The popular Market Vectors Gold Miners ETF (NYSE:GDX) is trading higher by $1.28 to $58.61 a share. Other gold mining stocks that are advancing today include Yamana Gold Inc (NYSE:AUY), Agnico Eagle Mines Ltd (NYSE:AEM), and Randgold Resources Ltd (NASDAQ:GOLD).