PRECIOUS METALS RECAP

2/6/2012

April Gold closed down 17.7 at 1722.6. This was 8.6 up from the low and 18.3 off the high.

March Silver finished up 0.001 at 33.75, 0.02 off the high and 0.765 up from the low.



The gold market started out under noted pressure today and slowly managed to throw off some of that mentality well before mid session. However, the bear camp generally controlled the trend today as prices faded again in the afternoon action. Some traders think it could be difficult to reverse the bearish tilt without noted improvement in the Euro zone situation or perhaps significantly higher equity market action. Others suggest that the gold bulls are caught between a rock and hard place by fears that the US might not implement QE3 and by residual Euro zone fears. Some might suggest that gold prices were weaker than silver prices today as silver almost managed to claw its way back into positive ground in the later afternoon trade.

Silver started out the new trading week under noted pressure before the market forged a fairly significant bottom just ahead of 7:30. From the initial morning low to the high forged ahead of the close, March silver managed a rather impressive 92 cent rally and at times March silver traded above the Friday closing level. However, silver was at least partially undermined by weakness in gold, strength in the dollar and downside action in the US equity markets. Some traders are fearful of a loss of upside momentum in silver, especially after the market forged a downside breakout off a somewhat extended consolidation pattern.