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Gold and Silver Inch Higher

Gold and silver are trading slightly higher today despite the stronger U.S. Dollar Index. Recently, the precious metals have pulled back sharply on heavy volume after making new highs for the year last week. When market leaders pullback or sell off on strong volume this is usually an indication that more of a correction is in the cards. However, we have not seen the stock market advance higher without gold and silver also trading higher.

Monday's are usually a light volume trading session for the major stock market indexes. Therefore, we rarely experience a sharp decline on the first day of the trading week. As long as the major stock indexes hold up and trade higher gold and silver will generally follow. The SPDR Gold Shares will have intra-day resistance around the $134.30 area and more around the $135.00 level.

The iShares Silver Trust(NYSE:SLV) is also trading higher today by 0.20 cents to $25.72. This popular trading vehicle will have short term intra-day resistance around the $25.80 area and much more just above the $26.00 level.

Most of the gold and silver mining stocks are trading basically around the unchanged level. Should the U.S. Dollar index begin to decline then it is likely that the mining stocks could advance further into the next resistance area. The same type of action can be expected in the SLV and GLD as well.