11/30/2011
February Gold closed up 30.7 at 1749.6. This was 45.3 up from the low and 5.1 off the high.
March Silver finished up 0.854 at 32.804, 0.191 off the high and 0.619 up from the low.
The gold market started out off balance and fearful of another day of over hanging Euro zone debt fears. However, the risk off vibe that was trying to entrench early in the session was tosses aside and a risk on vibe was put in its place. Clearly the ECB's actions weren't the main pillar in the shift in sentiment as coordinated liquidity intervention and much better than expected US employment data added into the positive physical commodity market environment today. With a weaker dollar, a quasi easing move from the Chinese and a very sharp US equity market rally the bull camp certainly had a number of arguments in their favor. Some traders will suggest that the Chinese easing move was the primary factor behind the bullish buzz today while others think the Euro zone situation was the 800 pound gorilla hanging around the neck of the market and therefore the reduction in anxiety toward that situation
The silver market managed to foil the bear camp which seemed to have an early edge today. However, silver was helped by a dramatic improvement in macro economic sentiment that was the result of coordinated central bank action and much better than expected US scheduled data flows. It is also likely that significant strength in copper lent some spill over support to silver prices in the trade today. As mentioned in the mid day coverage silver didn't seem to be markedly undermined by news of a noted increase in Mexican silver production over year ago levels. Today silver was a physical commodity market that benefited from an improvement in the macro economic outlook.
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