PRECIOUS METALS RECAP 4/12/2012

April Gold closed up 15.9 at 1674.9. This was 24.9 up from the low and 5.2 off the high.

May Silver finished up 1.004 at 32.525, 0.055 off the high and 1.05 up from the low.

The gold market clearly surprised a portion of the bull camp today, as prices leaped higher and managed that action in the face of conflicting US scheduled data. Outside market forces were mostly supportive of the bull case as the dollar was weaker, equities were higher and US equities seemed to contribute to a migration toward a partial risk on mentality. Some traders suggested that hope for strong GDP numbers from China tonight contributed to the rally in gold, while others suggested that a soft initial claims headline reading prompt talk that the Fed might be getting closer to supporting the US economy. It will be interesting to see if gold can manage to rally Friday morning in the event that Chinese GDP readings are stronger than expected as that news would probably tamp down expectations for PBOC easing.

The silver market also forged a noted range up extension today and in the process the May silver contract managed to reach the highest level since April 4th. Like gold, the silver market saw some assistance from noted gains in equities and it is also possible that expectations for tonight's Chinese GDP readings provided the silver market with a significant portion of its gains today. On the other hand, it is possible that silver might now need to see a Chinese GDP number of at least 8.5% for silver to avoid a setback in the Friday morning US trade.