Daily Market Update 3/14/11

GOLD
Gold closed today at $1,427.40 on light trading, up $7.10 at the close. Trading was dominated by the speculation over the effects this weekend’s Japanese earthquake, tsunami and nuclear reactor problems will cause.

The Japanese central bank pumped 15 trillion yen ($183 billion) into money markets to assure financial stability amid a plunge in stocks and surge in credit risk. Governor Masaaki Shirakawa and his board also increased their facility that buys assets from government bonds to exchange-traded funds to 10 trillion yen. In addition to the 15 trillion yen of emergency funds deployed in the central bank’s biggest one-day operation, the Bank of Japan offered to buy 3 trillion yen ($36.6 billion) of government bonds from lenders in repurchase agreements starting March 16.

SILVER
Silver was up $.08 on the day, closing at $35.90 per ounce.  Trading and volume was relative light with only $.80 cent price range from the highs to the lows of the day. Physical demand for popular silver investment products remains strong, as premiums stabilize. 

PLATINUM & PALLADIUM
Platinum was down $28 today at $1,758, and Palladium dropped $13, closing today at $748 per ounce. The three largest Japanese car manufacturers have been forced to shut down plants following Friday’s magnitude 8.9 earthquake. Based on that news, the platinum group metals were under sharp pressure today. The tragedy also will mean less buying of platinum jewelry in Japan, a major consumer.

Today’s other Important News

• JOHANNESBURG, March 14 (Reuters) - South Africa’s gold production fell 6.4 percent in 2010, an industry body said on Monday, making South Africa the world’s 3rd largest Gold producer.
• The Utah Sound Money Act passed both legislative bodies in Utah and is on its way to the Governor’s desk for signature. The legislation would make gold and silver coins legal tender in Utah. Please read the article at http://www.mintstategold.com/investor-education/utah_gold_message/  for additional information.