Daily Market Update 3/17/11

GOLD

Gold closed up $2.90 today at $1,404.10, with active trading on continued news from Japan, and the Middle East. Crude Oil was up 2% primarily due to increasing hostilities in Bahrain and Libya. The Japanese Yen hit a record high in trading against the Dollar. The reason for the Yen rally is the belief that Japan to be a net recipient of capital over the next few months, as Japanese insurers and companies repatriate funds to pay for the claims and construction losses thereby leading to yen appreciation .

SILVER

Silver closed at $34.35, down $0.25 on the day. Silver traded in a narrow 60 cent range and light volume.

Inflation is the key factor in regard to Silver’s volatility and Food prices in America soared at their fastest rate since the 1970s last month, a sharp reminder of the pressures facing the majority of consumers in the US. The cost of producing finished foods jumped 3.9% last month from a year earlier, as harsh winter weather exacerbated the already increasing price of many basic ingredients used in food. The increase was the steepest since November 1974. With oil prices having spiked on the political upheaval in North Africa and the Middle East, energy costs were 3.3% higher in the month, according to a report on producer prices from the Labor Department.

Today’s Important News

The Labor Department reported for the week of ending March 12th that Jobless claims declined to 385,000, and that U.S. consumer prices rose 0.5% in February, due to higher gasoline prices. A 100 ounce Gold Nugget sold for $460,000 in Sacramento last night. The nugget, considered the largest found in California, sold for over 3x it’s gold value. .