Daily Market Update 2/3/11

It was a whipsaw day in the precious metal markets today. Gold opened in New York trading slightly higher, then traded down to $1,325. During the Mid-session trading, based on increasing unrest in the Middle East which is highlighted by the ongoing conflict in Egypt, and Ben Bernanke speaking to the National Press Club, the Gold & Silver markets started moving higher. Ben Bernanke reiterated his commitment to keeping rates low for the long term, and overall inflation remains quite low. Gold closed up $20, Silver up .60 cents; overall a good day for gold/silver owners.

Other important news

• Demand continues strong for silver, with January’s U.S. Mint sales of 6,422,000 of the 1oz silver Eagles setting a record high. It broke the previous record set in November 2010 by more than 2 million ounces.
• The Senate approved an amendment Senate Bill 223, 81-17, to repeal a widely loathed tax provision in the health care law that requires firms to file a 1099 tax form for almost any company they buy goods from. The amendment is paid for by directing the federal government to cut $44 billion in unobligated funds from discretionary accounts. It is not certain how and when the House will consider action.