By InTheMoneyStocks on May 12th, 2010 9:32am Eastern Time
The U.S. Dollar Index is flat this morning ahead of the opening bell at the New York Stock Exchange. Normally, when the dollar is flat to lower the stock market index futures will usually be flat to positive. That is the case this morning as the S&P 500 e-mini futures are higher by 5.25 to 1157.50. Traders and investors should keep their eye on the dollar as the markets will usually trade inverse to the dollar.
Gold is higher again this morning trading up 17.00 points to 1237. This is a new all time high for gold as it now emerges as a true global currency. As long as central banks continue to print money in order to bail out banks gold could trade higher. The SPDR Gold Shares (NYSE:GLD) are trading higher by 0.54 to 121.18.
The Ishares Silver Trust (NYSE:SLV) is also trading higher by 0.16 this morning to 19.12. Often silver is a cheper way to play the rise in gold for many investors and traders.
The U.S. Dollar Index is the magic wand that controls the markets. When the dollar is higher the overall markets will usually be under pressure and vice versa.
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