It was an incredibly active day in the precious metals

As I am sure many of you witnessed, it was an incredibly active day in the precious metals market. Gold and silver have fallen 4% and 6% respectively during this session. Both metals traded in a relatively tight range overnight with silver managing to breach yesterday’s highs. It appeared as if the metals were consolidating and preparing for another run to the upside. At around 10 am they were stopped dead in their tracks and sent plummeting to erase nearly all of the their recent gains. There are several factors that cased this sell off. Primarily it was Bernanke’s “fedspeak” indicating that there is no chance of further quantitative easing in the forecast and that our economy is moderately improving. This caused the dollar gain steam and the yield of US 10yrs rally. In response we saw gold fall to test and break the $1750 level. As this happened, stop losses were triggered in both the gold and silver causing an aggressive liquidation of both metals. The recent move to the downside in these metals should have forced the weak longs to close their positions an should be considered a healthy correction, however there is a considerable chance that we may see gold and silver pull back a bit more before they find a stable base. All eyes will be on the jobless claims tomorrow. Good luck.

Metals	Last	%Change	Low	High
Au- Apr	1716.6	-4.01%	1704.5	1792.3
Pt-Apr	1694.3	-1.65%	1678.1	1739
Pd-Mar	706.65	-1.75%	702.55	721.95
Ag-May	34.950	-6.06%	33.825	37.580
London	AM	PM	Minor	PGMs
Au	1788	1770	Rh	1540
Pt	1727	1726	Ru	135
Pd	718	722	Ir	1100
Ag	37.23	DJI	12991.42	-13.7
Currencies
	USD	EUR	JPY	GBP
USD	0	1.334	0.012334	1.5937
EUR	0.7496	0	0.92456	1.1947
JPY	81.08	108.16	0	129.215
GBP	0.6275	0.83706	0.7739	0
Crude Brent	122.71	Comex Copper	387.8
Crude WTI	107.01	Nat Gas	2.607
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

The risk on sentiment continues in the precious metals

The risk on sentiment continues in the precious metals market this am with dollar weakening versus the euro. Mix bag of economic data from the US with durable goods orders falling 4% and capital good falling 4.5% in Jan and home prices falling while consumer confidence and Richmond Fed manufacturing index rising. A combination of more liquidity in the financial system and votes on austerity in Europe is helping the euro. Silver is the clear winner so far in 2012 up over 30% YTD. After breaking out of the range and smashing all technical averages, it’s off to the races. We expect the gold to test 1800 while silver holds or sells off slightly to bring the au/ag ratio to back around 50. With crude continue to hover over $108, we would expect the industrial metals to come off in the near future. The markets are drunk on liquidity right now and if the world economy recovers slower than expected, we will see a steeper sell off. Hang on and enjoy the ride in these markets, we are back to 2011….

Metals	Last	%Change	Low	High
Au- Apr	1788.6	0.77%	1767	1792.7
Pt-Apr	1722.8	0.52%	1694.2	1728.4
Pd-Mar	720.9	2.20%	699.70	721.20
Ag-Mar	37.075	4.42%	35.315	37.225
London	AM	PM	Minor	PGMs
Au	1774.75	1781	Rh	1540
Pt	1710	1712	Ru	135
Pd	708	712	Ir	1100
Ag	35.6	DJI	13011.48	29.97
Currencies
	USD	EUR	JPY	GBP
USD	0	1.3458	0.012428	1.5884
EUR	0.7431	0	0.9235	1.1803
JPY	80.47	108.29	0	127.813
GBP	0.6296	0.84721	0.7824	0
Crude Brent	123.08	Comex Copper	390.75
Crude WTI	107.97	Nat Gas	2.521
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES

The EUR has been quite strong against the USD

The EUR has been quite strong against the USD over the past few days, yet precious metals have slowed their rapid accent. Gold and silver remain relatively strong with good support at $1760 and $35.00 respectively. Platinum and palladium have recently retraced some of their gains as it seems that the strike at the Rustenburg mine is coming to an end. As long as low interest rates and chance of further quantitative easing are present we should see the sentiment for the precious metals remain bullish. Have great day.

Metals	Last	%Change	Low	High
Au- Apr	1774.8	-0.09%	1762.6	1781
Pt-Apr	1709	-0.33%	1693.0	1719.9
Pd-Mar	706	-0.68%	703.70	716.55
Ag-Mar	35.510	0.49%	35.045	35.625
London	AM	PM	Minor	PGMs
Au	1765	1772	Rh	1540
Pt	1700	1706	Ru	135
Pd	710	707	Ir	1100
Ag	35.09	DJI	13005.46	22.51
Currencies
	USD	EUR	JPY	GBP
USD	0	1.3391	0.012441	1.5817
EUR	0.7468	0	0.92902	1.1812
JPY	80.38	107.64	0	127.144
GBP	0.6323	0.84662	0.7866	0
Crude Brent	123.94	Comex Copper	387.7
Crude WTI	108.95	Nat Gas	2.5
*THESE PRICES ARE FOR INDICATION ONLY CALL FOR QUOTES