PRECIOUS METALS RECAP 4/13/2012

April Gold closed down 22.4 at 1657.1. This was 7.1 up from the low and 17.7 off the high.

May Silver finished down 1.135 at 31.39, 0.885 off the high and 0.095 up from the low.

The gold market tried to return to the vicinity of the prior session's highs but that action was short lived and prices ultimately gave in to the bear's wishes. Fear of slowing was seen from a number of fronts and that bearish influence was enhanced by adverse currency market action, weaker equities and some modest technical damage on the gold charts. If the concern toward Spanish debt is a front and center item at the start of next week that could quickly extend the trends seen today in a host of physical commodity markets. One might also suggest that confirmation of muted US inflation readings was yet another reason behind the sell off in gold and precious metals prices today. While evidence of slowing might eventually bring a number of central banks off the bench, evidence of slowing with central bank support clearly emboldens the bear camp.

The silver market also forged a rather wide trading range today and unfortunately for the bull camp most of that range action favored the downside tilt. Silver was partially disappointed with the softer than expected Chinese numbers and it is also likely that part of the declines today were in effect a reversal of the gains forged in the prior two trading sessions. Eventually slow data might become supportive of silver but in the short term, the hope of additional easing hasn't been able to underpin prices.