PRECIOUS METALS RECAP

April Gold closed up 6.6 at 1581.5. This was 15.1 up from the low and 2.8 off the high.

The gold market waffled around both sides of unchanged today suggesting that the market continues to lack a definitive fundamental focus. Clearly gold continues to be negatively impacted by positive economic views and for some gold bulls that is discouraging. For the time being gold seems to be fearful of a decent US payroll report on Friday morning but at some point one might expect long liquidation off flight to quality to run its course. However, the Dollar remains very strong at the expense of the Euro and most other currencies and that might be giving some gold bears an added incentive to press prices downward.

May silver forged a rather wide trading range today but one might suggest that silver outperformed the gold market at times on the upside track. At times today silver seemed to be tracking with platinum and less with gold but in the end the industrial metals track was less than impressive today. While gold was at times undermined by positive US scheduled data flows and higher equities, the silver market seemed to become less concerned about that type of thinking as the session progressed. However, it could still be a little premature to think that silver is poised to benefit from positive US economic views.

Technical Outlook

COMEX SILVER (MAY) 03/07/2013:The next upside objective is 2946.0. The next area of resistance is around 2922.0 and 2948.0, while 1st support hits today at 2872.0 and below there at 2834.0.

COMEX GOLD (APR) 03/07/2013: The next downside target is 1560.8. The next area of resistance is around 1589.0 and 1595.3, while 1st support hits today at 1572.4 and below there at 1560.8.