Daily Market Update 3/18/11

GOLD

Gold was up $13.90 today, closing the week at $1,418.00 per ounce. It was extraordinary week for gold, with heavy trading and volume on a $53 price range. Bank of Japan has announced, with the help of the finance ministers and bank governors from the Group of Seven major industrial nations, they will go the way of “powerful monetary easing” as policy makers sought to reduce the threat of the world’s third-largest economy sinking into a recession. This monetary policy decision has been interpreted as very bullish for gold and silver .

SILVER

Silver closed today $35.02, up $.67 cents on the day, and exceptional volatility for the week. Silver’s high to low for the week was 7%, closing near the high for the week. This week’s popular expression, “We don’t know what we Don’t Know”, was shared by many financial analysts, precious metal brokers and commentators, in respect to the Japanese situations effect on the World’s economy. Silver & Gold has shown to be the safest haven during times of instability.

Gold, Silver, and Oil surged after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi’s air force. The UN voted to establish a no-fly zone over Libya and demanded a cease-fire with rebels; otherwise military action is a certainty. One way or another, it seems that the Libyan Civil War will end soon by the hand of Gaddafi or UN intervention. Oil has risen 3% late Thursday on concerns that continuing turmoil in Libya & Bahrain may cause a disruption in oil supplies.

Of course the Tsunami has had major ramifications in the industrial sector and the concerns over the nuclear reactors still remain. Platinum & Palladium have remained under pressure, until today, but gold looks to be still holding on its safe haven demand. Even though everything is in the green this morning, it’s not taking off as would have been expected when the Japanese had the nuclear plant under control for the short term. We are in a very tentative situation, full of variables. It’s like a roller coaster you have never ridden, and you can’t predict where the next turn or drop is coming.

Today’s Important News

The Federal Reserve announced Friday it has completed stress tests on 19 big banks and that some firms examined are expected to be permitted to announce dividend hikes and share repurchases.

The investment bank, Goldman Sachs, said in a research report Thursday, that it expects gold to rally "towards our 3-month price target of $1,480" an ounce. Goldman is recommending investors get long on gold.

Bahrain declared a state of emergency on March 15 as a second contingent of troops from Gulf nations poured into the kingdom. About 1,000 people in Saudi Arabia’s eastern city of al-Qatif defied a ban on demonstrations and protested peacefully on March 16, demanding the country’s troops end their incursion into Bahrain.