This morning oil is trading higher as the problems in the Middle East and northern Africa continue to escalate. There are reports that Iran, and Saudi Arabia, are facing tension from protesters. Saudi Arabia is the largest oil producer in the Middle East. Iran is the second largest oil producing country in the Middle East. Any disruption in oil production will effect the price of oil and ultimately the economy around the world. This morning spot oil for April delivery is trading higher by $1.40 to $98.37 a barrel.
Gold and Silver are also surging higher this morning as the U.S. Dollar Index remains near 4-month lows. Gold and silver are viewed by many investors as a true form of currency against the money printing that is done by the central banks. The iShares Silver Trust ETF (NYSE:SLV) is trading at a new 52 week high at $33.54 a share. Traders should watch for short term intra-day resistance on the SLV around the $34.00 level. Spot silver is also trading around new 31 year highs at $34.40 an ounce.
Gold is also trading near all time highs this morning. April gold is trading is trading at $1422.00 an ounce this morning. The all time high for gold was made on December 7, 2011 at $1432.50 an ounce. As long as the Federal Reserve Bank and the other central banks around the world continue to print money at an alarming rate gold and silver can continue to climb. Please remember that when gold and silver increase it is usually a sure sign of inflation.