PRECIOUS METALS RECAP 4/16/2012

April Gold closed down 8.6 at 1650.5. This was 9.3 up from the low and 6.3 off the high.

May Silver finished down 0.017 at 31.373, 0.327 off the high and 0.088 up from the low.

The gold market managed a range down extension to start the new trading week but the market was able to reject that initial slide. However, after a better than expected US retail sales report and initially higher US equity market action, sentiment soured considerably in the wake of the US housing data that was released this morning. With equities falling back from their highs, the last data point of the day concerning and traders attempting to fan the flames of concern toward the European debt situation, the bear camp in gold appeared to have more ammunition than the bull camp today.

For a while today the May silver contract seemed to be tracking different fundamentals than the rest of the precious metals complex. In addition to slack physical commodity price action in outside markets, silver also seemed to be undermined by a definitive downside breakout in copper prices. The bulls might suggest that the big downside breakout was ultimately rejected but technical traders think there was some psychological damage done with the extremely poor opening today in copper prices as macro economic slowing fears are becoming a key headline focus.