Daily Market Update 3/1/11

GOLD
Gold closed today at $1,428 up $18.80 on heavy trading. Today’s high was $1,433.40, only $0.70 below the all-time Gold inter-day high of $1,434.10. Today Gold opened higher on a weaker dollar against the euro which moved higher on extremely positive data from Kathleen Brooks (Forex.com Director) and a sharp decline in German unemployment. The dollar rallied after Federal Reserve Chairman Ben Bernanke told Congress ”that inflation due to commodity-price increases will be modest and the central bank would continue buying bonds”.

As the violence escalates in Libya and unrest continues to spread across the Middle East and North Africa the World’s financial markets are declining, the U.S. DJIA was down 168 points today.

SILVER
Silver set a new 31 year high today closing at $34.40 per ounce, up 75 cents today and $5.48 (19.45%) for the month of February. Demand continues to grow and backwardation is expanding.  Concerns about future shortages of Crude Oil are driving up prices to almost $100 a barrel. Gasoline is moving above $4 a gallon in the U.S. I think the record price increases in Silver is telling us we will see real inflation sooner than expected.