PRECIOUS METALS RECAP 2/2/2012

April Gold closed up 13.4 at 1762.9. This was 19.6 up from the low and 1.1 off the high.

March Silver finished up 0.368 at 34.175, 0.175 off the high and 0.565 up from the low.
April gold prices rallied throughout the trading session and to its best level since December 2nd. Prices were a bit choppy during the early morning hours as it digested positive US economic data and Euro zone debt uncertainty. By the middle morning hours, it seemed that the gold market chose to focus on the positive US Jobless Claims data. Some traders indicated that the positive read on the labor market this morning could bode well for tomorrow's January Non-Farm Payroll data. Added strength in April gold came from Fed Chairman Bernanke's testimony to the House budget committee.

March silver prices broke out above its recent congestion zone today and rallied to its best level since November 16th. The market seemed to catch a bid following this morning's claims data. Tomorrow's US jobs data may keep further gains in check, as those numbers will go a long way towards determining the future course of broad market sentiment.