Daily Market Update 3/11/11

GOLD
Gold closed today at $1,420.30, up $10.20 for the day. Gold opened lower based on lower crude Oil prices resulting from the assumption that the Japanese earthquake and a larger-than-expected increase in US inventories would lead to lower Oil demand (Japan is the World’s 3rd largest consumer of Oil). However, the Gold market turned higher as the U.S. dollar index slumped amid fresh talk of an interest rate hike in the European Union. India reported very strong growth in Gold demand of 66% in 2010, at 963.1 tonnes, thanks to jewelry demand and a boom in investment demand in both the yellow metal and Silver.

SILVER
Silver closed today at $35.82, up $.62 for the day. Silver had an exciting $2 trading range today on very active trading. At one point the Silver price reached $34.16 an ounce and quickly recovered almost a $1 on heavy buying. I think the $34.16 will be an important support area for the future. Remember, Silver has higher volatility than Gold and is affected more by growing global food and commodity inflation.

The U.S. Commerce & Labor Department reported today:

• U.S. retail sales climbed 1% in February and are up the most in four months.
• Inventories at U.S. businesses rose 0.9% in January.
• Job openings at U.S. workplaces declined to 2.8 million in January from 2.9 million in December.

Tune in Tomorrow night (Saturday) to my weekly radio show on Talk Radio 790 KABC in the Southern California area, or listen to www.kabc.com at 9pm PST to hear an extended program on Gold, Silver and precious metals. The show is live (not recorded), so you can call in with your comments or questions.