Daily Market Update 3/7/11

GOLD
Gold closed in very active trading today at $1,436 up $8 on the day. The trading action was centered around the hostiles’ in Libya and higher crude oil prices.

SILVER
Silver closed in active trading and heavy volume at $36.10, up $.70 and setting another 31 year high. The U.S. Mint has sold 9,662.000 Silver 1oz Eagles in the first two months of the year. Since the U.S. Mint has not been able to keep up with demand, they have cut back allocations of Silver Eagles to the distributors.

Three events which happened over the weekend that could affect the value of Gold/Silver were:

1. Passage of legislation that would recognize gold and silver coins as legal tender in the state of Utah. Under this bill, coins would not replace the current paper currency but would be used and accepted voluntarily as an alternative.  If the bill passes, Utah would become the first of 13 states that have proposed similar measures. The others states are Colorado, Georgia, Montana, Missouri, Indiana, Iowa, New Hampshire, Oklahoma, South Carolina, Tennessee, Vermont and Washington.
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2. Moody’s Investors Service has today downgraded Greece’s government bond ratings to B1 from Ba1, and assigned a negative outlook to the rating. The three grade decline was given after completing a review that commenced on December 16, 2010.
3. China targets 2011 consumer price rise at 4% and GDP growth at 8%.