Daily Market Update 1/31/11

Today there was a War in the commodity pits between the buyers concerned about the problems in Egypt worsening and/or spilling over to other Middle Eastern countries, and the chartists who believe gold should hit the 150 day moving average of $1,306 per ounce before the next up rally. Gold closed at $1,329, down $11 on the day. Silver behaved much better closing up .07 on the day to $27.99.  

 Other interesting news today:

• An official from China’s central bank said the Chinese government should increase its official holdings of gold and silver
• Consumer spending in the U.S. rose more than forecast in December
• The Dollar continues to lose value

All three of these news items are long term bullish for Gold and Silver.