PRECIOUS METALS RECAP 4/18/2012

June Gold closed down 10.2 at 1640.9. This was 2.8 up from the low and 14.3 off the high.

May Silver finished down 0.187 at 31.487, 0.168 off the high and 0.147 up from the low.

The gold market spent a large portion of the Wednesday trade in lower ground. Some traders suggested that many physical commodity markets were looking ahead to the Spanish debt auction with concern as higher yields on the debt offerings Thursday morning might whip up a definitive risk off vibe. While June gold managed to hold above the prior session's low, seeing prices drift down toward a breakout might have given the bear camp some added resolve today. While the BOC wasn't threatening to implement tightening moves anytime soon with their dialogue today, most physical commodity markets have little tolerance for anything besides easing talk. With equities weaker, Treasuries higher and adverse currency market action the gold trade was simply presented with an overall bearish outside market environment.

The silver market almost replicated the Tuesday trading range in the Wednesday action. With a host of physical commodity markets trading weaker it is likely that negative macro economic vibes were contributing to the downward track in prices today. Clearly silver and other markets were fearful of a soaring yields in the Thursday morning Spanish debt auctions and perhaps some traders are simply concerned about the pace of US and Chinese economic activity.