Markets are very quiet overnight

Markets are very quiet overnight and this morning with no economic news. The precious metals continue to be range bound. With the US economy improving and lingering questions about contagion of the European financial crisis to Portugal and/or others, we expect the dollar to strengthen in the coming week. We would be buyers of gold and silver at any major selloff as we think the metals are oversold in the short term. We would be a seller of platinum and palladium above $1750 and $725 as economic fundamentals would not support prices at those levels. Keep a close eye on euro/dollar and metals ratios for trading opportunities. We would trade lightly and be on the lookout for major headline new risks. All signs point to a very quiet Monday.

Metals	Last	%Change	Low	High
Au- Apr	1655.2	-0.04%	1652.3	1665.1
Pt-Apr	1675	-0.04%	1670.5	1684
Pd-Jun	702.65	0.07%	698.00	703.90
Ag-May	32.490	-0.35%	32.330	32.770
London	AM	PM	Minor	PGMs
Au	1654	-	Rh	1525
Pt	1672	1673	Ru	130
Pd	700	702	Ir	1100
Ag	32.44	DJI	13218.59	-14.03
Currencies
	USD	EUR	JPY	GBP
USD	0	1.3156	0.011975	1.586
EUR	0.7599	0	0.91017	1.2055
JPY	83.5	109.86	0	132.435
GBP	0.6305	0.8295	0.7551	0
Crude Brent	125.36	Comex Copper	390.25
Crude WTI	107.44	Nat Gas	2.329
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

With very little news coming from the Asian and European fronts

With very little news coming from the Asian and European fronts, the markets turned their attention to the US economic data this morning. The weekly US initial jobless claims and continuing claims data were both better than expected at 351k and 3343k respectively. US producer price index rose 0.4% and excluding food and energy rose 0.2% in Feb while rising 3.3% and 3.0% year over year. The data points to a recovering labor market in the US and the inflation numbers might keep the US Fed from further QE until there are signs of deteriorating economic conditions in the US or around the world. The commodity markets have been range bound today after the volatility of the past few trading sessions. The commodity bulls are still holding onto the idea that central banks around the world will continue to pump liquidity into the financial systems while economic recoveries will stall due to China and austerity measures in Europe. The commodity bears are looking at financial stability in Europe and better economic situation in the US to sell off gold and silver. We believe that QE3 in the US is most likely not coming in the near future but the Fed will continue to leave interest rates at historical lows as the fragile economies around the world continue to recover. China is the 300lb gorilla in the room and all eyes will be on their balancing act between curbing the housing bubble and growing the economy at the same time. We believe that gold and silver are oversold and nearing a bottom in the short term and would be a buyer on the next strong sell off. We expect platinum and palladium to continue to trade in a range. We would be watching the platinum/gold and gold/silver ratio for any trading opportunities while the metals search for directions.

Metals	Last	%Change	Low	High
Au- Apr	1648.8	0.36%	1636.2	1651.9
Pt-Apr	1678.5	0.23%	1661.4	1684.9
Pd-Jun	700	0.36%	690.20	701.95
Ag-May	32.270	0.28%	31.935	32.620
London	AM	PM	Minor	PGMs
Au	1646.75	1648	Rh	1525
Pt	1680	1676	Ru	130
Pd	698	693	Ir	1100
Ag	32.36	DJI	13196.79	2.69
Currencies
	USD	EUR	JPY	GBP
USD	0	1.3078	0.012015	1.5672
EUR	0.7649	0	0.91898	1.1984
JPY	83.22	108.83	0	130.415
GBP	0.6381	0.83445	0.7668	0
Crude Brent	122	Comex Copper	388
Crude WTI	104.36	Nat Gas	2.302
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

The precious metals have been taking a serious beating

The precious metals have been taking a serious beating over the last three sessions. Most of this move seems to have been sparked by the “fed speak” which is starting to show faint signs of a brighter and more prosperous future for the US economy. In addition to this, the stress tests indicated that US banks are healthier than many expected. Gold and silver have sold off nearly 5% and 8% respectively over the last three sessions. Both metals have closed below technically important levels in this session and look to be setting up for a further move to the downside in the near term. Gold has closed well below its 200 DMA ($1681.23) which leaves it vulnerable to the technical forces that may help it test $1600 and eventually $1550. The move in silver, as usual, has been quite unforgiving. If the metal continues it sell off into the next session, there may be some support at the $30.00 – $30.50 range, should it break below $30 it will most certainly test $27.

Platinum and palladium have held up quite well during this move. The PGM’s are now trading more like the other industrial commodities. It is also important to note that platinum has closed above gold for the second time since September 2011. Overall, it seems the perception has changed in the precious metals market over the last 2 weeks. Tomorrow we have the US jobless claims and PPI coming out, good numbers may help to add fuel to the fire.

Metals	Last	%Change	Low	High
Au- Apr	1638	-3.30%	1635.8	1682.8
Pt-Apr	1666.7	-2.07%	1662.4	1706.2
Pd-Jun	693.25	-2.26%	692.25	711.00
Ag-May	31.805	-5.29%	31.625	33.470
London	AM	PM	Minor	PGMs
Au	1662	1644.25	Rh	1500
Pt	1684	1679	Ru	130
Pd	699	700	Ir	1100
Ag	32.84	DJI	13181.95	4.27
Currencies
	USD	EUR	JPY	GBP
USD	0	1.3029	0.011956	1.5673
EUR	0.7676	0	0.9177	1.203
JPY	83.64	108.97	0	131.088
GBP	0.638	0.83126	0.7629	0
Crude Brent	124.83	Comex Copper	383.75
Crude WTI	105.28	Nat Gas	2.29
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES