Daily Market Update 3/10/11

GOLD
Gold dropped $19.10 today, closing at $1,410.10. The dollar was up against the Euro and crude oil prices dropped $3 a barrel, but there was no significant news that would turn the gold market bearish. The fundamentals are still in place as shown by today’s U.S. Commerce Department report. According to the report, the U.S. trade deficit widened by 15.1% in January to $46.3 billion, the largest since June 2010.  The U.S. trade deficit with China widened to $23.2 billion, compared with $18.3 billion in the same month last year.

SILVER
Silver was off by $.85 today, closing at $35.20, on good volume in active trading.  Demand for physical silver continues to increase. The U.S. Mint is unable to fill orders for Silver 1 oz Eagles. As a result, they are now giving an allocation to distributors, causing an increase in the premium over spot.

I would strongly recommend using this temporary pull back in prices to add to your precious metal holdings.