Daily Market Update 3/23/11

GOLD

Gold is up $10.20 today, closing at $1,437.20 on active trading with excellent volume. Rob McEwen, chairman and chief executive of US Gold Corp, told Reuters today, that gold was in the middle of a super cycle that could end by 2015. He added that the length of the gold super cycle and the $5,000 forecast were based on historical gold prices and the ratio of the Dow stock index against gold since 1970.

SILVER

Silver closed at $37.21, up $1.01 for the day, setting another 30 year high. Don’t blink it could hit $40 this month. Physical shortages and increasing demand continue to be a key issue with Silver. US Silver Eagles, Silver Trade Units and Morgan & Peace Silver Dollars are the most popular investment products for Silver buyers.

A Dow Jones Newswires story on Tuesday pointed out that finance professionals are now expecting rising inflationary pressures in the coming months, according to a survey by J.P. Morgan.

Today’s Important News

The US Dollar is up today on concerns over Portugal’s vote on austerity measures and possible resignation of the prime minister. Portugal is reportedly bracing for a potential collapse of the government.

London’s Financial Times on March 21, cited data from the International Monetary Fund (IMF) that the Libya holds 143.8 tonnes of gold as reserves in December 2009. The location and current status is unknown.

Sales of new single-family homes slumped 16.9% to a record-low seasonally-adjusted annual rate of 250,000, the Commerce Department estimated Wednesday. The figure was far below the 290,000 that economists polled.