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Gold and Silver Rally Off Session Lows

|Includes: GLD, iShares Silver Trust ETF (SLV), SPY
This morning gold and silver traded sharply lower after news from the massive 8.9 Japan earthquake. Whenever a large natural disaster occurs the first reaction by traders is usually to sell first and ask questions later. However, central banks may need to print or create more money in order for the Japanese government to rebuild. Anytime a government borrows money from a central bank gold and silver will usually increase.

The SPDR Gold Shares are trading higher this morning by 0.15 to $137.91 a share. The GLD will have intra-day resistance around the $138.50 level. Traders can watch for a pullback around this level.

The iShares Silver Trust(NYSE:SLV) has rallied sharply off the session lows this morning. The SLV is trading lower by just 0.03 cents this morning to $34.33 a share. Traders can watch the $34.65 level as important intra-day resistance. This is a likely short term intra-day pullback area.

Nicholas Santiago