Daily Market Update 2/2/11

Gold was lower today caused by a stronger dollar, and an increase in private sector hiring, which jumped by 187,000 jobs in January (the government had expected a 148,000 job increase.) Gold was down $6 for the day, still within the trading range ($1,306 to $1,346). Gold is building an excellent base to support the next move higher. Silver and Palladium were also lower on light trading.   Platinum was higher on improving industrial demand.

We continue to see widening commodity inflation, being led by sugar, oil, copper, tin and cotton. This will result in increased domestic inflation soon, definitely bullish for precious metals, especially Silver.