Bounce For Profit: Metal Stocks Holding Major Supports
The metal stocks continue to hold key support levels on their daily charts. Stocks like Goldcorp Inc. (USA) (NYSE:GG) and Silver Wheaton Corp. (USA) (NYSE:SLW) are into major support as shown in the chart below. These stocks have seen a dramatic decline in recent months as the Dollar has surged and gold and silver have fallen.
Gold & Gold Miners Are Closing in on a Major Bottom
This afternoon, almost every major stock market index is trading lower on the session. Traders and investors are experiencing a very rare broad based decline. The one sector that is showing strength today is gold and the gold mining stocks. The SPDR Gold Trust (NYSEARCA:GLD) is actually trading higher by $1.88 to $161.25 a share.
This morning, most of the leading gold and gold mining indexes are trading higher to start the day. As you may know, the gold sector has been extremely weak since late February 2012. At that time, the highly popular SPDR Gold Shares (NYSE:GLD) were trading as high as $174.00 a share. Today, the GLD is trading higher by $1.62 to $159.92 a share.
This afternoon, spot gold is surging higher by $27.00 to $1689.00 an ounce. The precious metal took off to the upside after the Ben Bernanke speech this morning which stated that the Federal Reserve would continue with further accommodating policies. Gold is one of the best indicators that inflation is being created.
Current Account, Import Prices Says US is Buying Goods on the Cheap
The precious metals are taking another hard hit today as money is flowing out. Not only is the Dollar stronger but the risk on trade is all the rage. The PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) is trading at $22.41, +0.11 (+0.49%). When traders and investors feel the economy is on the right path, there is no need to hold gold for safety.
Once again, the U.S. Dollar Index futures (DX H2) sold off shortly after the opening bell rang at the New York Stock Exchange. Most traders should know that when the U.S. Dollar declines the major stock and commodity indexes will inflate and trade higher. That is certainly what has happened this afternoon. Earlier today, when the U.S.
This morning, the precious metals are trading sharply higher. The catalyst for the advance in gold, and silver is the weaker U.S. Dollar Index, and the pledge by central banks to keep easy money available. Last night, the People Bank of China (Chinese central bank) cut reserve requirements for lenders. This is just another example of easy credit.