One of the best indicators of inflation and deflation is the action in gold and silver. When gold and silver rally it is telling us that inflation is taking hold, the opposite is true when gold and silver decline. The precious metals will usually trade inverse to the U.S. Dollar Index. On Friday morning, the U.S. Dollar Index plunged after the opening bell rang at the New York Stock Exchange. This type of action in the dollar happens very often. A falling U.S. dollar is always beneficial to the precious metals.
The popular SPDR Gold Trust (NYSEARCA:GLD) is trading higher 0.61 cents to $159.90 a share. The GLD will have intra-day resistance around the $160.75 area. Traders must remember that if U.S. Dollar Index rallies higher the precious metals are likely to pull back further. Some other ways to play the precious metals will be to use equities such as iShares Gold Trust(ETF) (NYSEARCA:IAU), Sprott Physical Gold Trust (NYSEARCA:PHYS), and the ProShares Ultra Silver (ETF) (NYSEARCA:AGQ).
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The Skinny On Gold And Silver: April 22, 2012
Published 04/20/2012, 02:11 AM
Updated 07/09/2023, 06:31 AM
The Skinny On Gold And Silver: April 22, 2012
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