PRECIOUS METALS RECAP 2/7/2012

April Gold closed up 23.9 at 1748.8. This was 36.2 up from the low and 3.8 off the high.

March Silver finished up 0.444 at 34.194, 0.046 off the high and 0.894 up from the low.



After starting out with a fresh new low for the move, the April gold contract managed to reverse course and charge sharply higher on the day. While some might suggest that favorable macro economic comments from the Fed Chairman provided the lift, an even larger portion of the trade would probably lay the gains on the back of positive vibes flowing from the Greek debt negotiations. Gold might also have been lifted by favorable currency market action and by periodic gains in US equities, as that action also points to at least a temporary return to risk-on type environment.

Like gold, the silver market started out weak but the market managed to throw off that negative impetus prior to 9:00 AM. From the mid morning low to the high in the early afternoon action the March silver contract managed a low to high rally of roughly $1.07 an ounce and therefore one might suggest that a host of factors might have been driving silver prices upward. In addition to decent economic data, silver probably saw some lift from up beat Bernanke comments and it goes without saying that a rally in the Euro probably ushered some buyers toward silver today. In the end, ideas of a nearing resolution on the Greek debt negotiations probably provided the brunt of the buying in silver today.