PRECIOUS METALS RECAP 3/27/2012

April Gold closed down 5 at 1680.6. This was 2 up from the low and 16.3 off the high.

May Silver finished down 0.134 at 32.616, 0.514 off the high and 0.041 up from the low.

The gold market initially managed an upside breakout on the charts before reversing course and sliding back into negative territory. Not surprisingly the US scheduled data prompted renewed fears of slowing and that in turn applied pressure to the Euro. With the US equity market also failing to hold a new high probe and in turn posting a somewhat negative chart pattern, one got the sense that overall macro economic expectations were deteriorating. In the end, weakness in the Euro and weakness in US equities seemed to give the bear camp in gold a green light throughout most of the Tuesday US trade.

While the May silver contract managed an initial new high move on the charts, prices reversed course into the US scheduled data window. With renewed fears of slowing fostered by the data flow and adverse currency market action, silver was seeing long profit taking from a number of different sources. In fact, noted weakness in copper prices seemed to provide silver with an added measure of pressure, as silver recently has tended to track with the industrial metals sector of the metals complex.