Daily Market Update 3/9/11

GOLD
Gold closed down $1 today, at $1,429.20.  A little stability in the Gold and Silver prices is greatly appreciated. Gold traded in a narrow $14 range today of good volume. Gold has been over $1,400 an ounce for the past 13 trading days and building a great base for its next move above $1,450 (next resistance area).

SILVER
Silver’s meteoric rise continues, closing at $36.05, up $.20 on the day in quiet trading.

Foreign Exchange markets have been very active and highly volatile in the face of increasing concern about the Euro Debt and the middle East problem. Most analysts compare the strength of the Dollar to the Euro and vice versa. In my opinion, it is like comparing Charlie Sheen to Muammar Gaddafi on winning a credibility award!  Both currencies are the major players, but are being devalued at an extraordinary pace due to massive debt and inflation. Financial analysts rarely compare Dollar or Euro to the Chinese Yuan or India’s Rupee. Both India and China have massive reserves and a trade surplus, plus their currencies are highly respected worldwide. 

Today’s other Important News

• China should use some of its $2.85 trillion foreign exchange reserves to buy more gold a government adviser was quoted as saying by local media reports on Wednesday. Li Yining, a senior economist at Peking University and member of the Chinese People’s Political Consultative Committee, an advisory body to the national parliament, said China should use the precious metal to hedge against risks of foreign currency devaluations.
• Euro Debt Problem isn’t going away. Portugal’s borrowing costs increased at an auction of 1 billion euros ($1.4 billion) of bonds due in 2013, as the country opted to avoid following Greece and Ireland in seeking a bailout. Today’s auction came before a March 11 meeting in Brussels at which European Union leaders will debate how to construct a comprehensive support package for the region’s most indebted nations ahead of a summit scheduled for March 24-25.