PRECIOUS METALS RECAP 4/11/2012

April Gold closed down 2.9 at 1656.6. This was 1.9 up from the low and 3.1 off the high.

May Silver finished down 0.158 at 31.521, 0.299 off the high and 0.151 up from the low.



The gold bulls have to be confident in the markets capacity to hold up around the $1,663 level on the charts. In fact, gold seemed to be fostering talk of fresh flight to quality buying and that is a change of pace. Even more surprising is the fact that gold continued to hover around unchanged levels in the face of a minor disappointment on the proximity of QE3 from the US. However, stronger equities and minimally supportive currency market action probably kept some bulls from banking profits on the rally from last week's lows. Even though other markets weren't registering much concern toward the Euro zone, a portion of the gold trade is trying to fashion that theme into a key pillar of the bull case for gold prices.

The silver market mostly underperformed the gold market today. In fact, silver clearly showed more weakness than a host of physical commodity markets. However, silver had to be somewhat undermined by dialogue that the Fed might not provide assistance to the US economy unless data showed more significant weakness ahead. Therefore, silver and other physical commodity markets were left with mixed opinions on the direction of the economy and on the direction of physical commodity prices.