Daily Market Update 2/9/11

After yesterday’s break out rally in gold and silver, today’s action was quiet while consolidating the gains. Gold closed at $1,361 down $2 for the day, and Silver closed at $30.16 down $.14 on light trading.

A weaker Dollar, and Ben Bernanke downplaying the U.S. inflation risk in Congressional testimony, added to the support of precious metals trading.

Today’s Important News:

• Global economist David Hale reports China’s central bank is being advised to increase its gold holdings nearly tenfold to a level greater than the world’s biggest bullion depository, the US’s Fort Knox. Currently China has only 1% of its massive $2.8 trillion cash reserves in Gold.
• Jewelry retailers in the UAE (Dubai-based) have reported a rise in gold sales in January by as much as 25% compared to the same period last year.