PRECIOUS METALS RECAP 3/30/2012

April Gold closed up 15.6 at 1667.8. This was 8.8 up from the low and 2.2 off the high.

May Silver finished up 0.492 at 32.484, 0.141 off the high and 0.254 up from the low.

The gold market benefited from the risk on track on Friday morning, but the trade at times was skeptical of the positive economic track being factored in the equity markets. In retrospect, the US economic track presented a mix picture today but the focus of the trade in physical commodity markets early next week might be heavily determined by the Chinese PMI readings that will be released Sunday night. Gold saw some evidence of rising physical production today but the main focus of the trade seemed to remain on the demand side of the equation. However, the gold market probably managed to draft some outside market support from currency market action and perhaps gold also saw some minor lift from the rather sharp gains in grain prices.

The silver market at times outperformed the gold market and that in turn prompted a number of analysts to suggest that silver was coming back into investment favor relative to gold. Silver was probably lifted as a result of positive action in US equities and perhaps to a lesser degree by supportive currency market action. Despite periodic strength in silver prices today the market wasn't able to rise much above the middle of this week's trading range.