Daily Market Update 3/25/11

GOLD
Gold closed at $1,430.40, down $6.80 on narrow trading. Volume was light, taking direction from the U.S. dollar index (which had a short-covering rally) and crude oil prices (which were down on the day).

The Chinese central bank said that inflation risks in economies internationally will support demand for gold, with prices for the precious metal likely to continue to make record highs. Read entire report at… http://www.mintstategold.com/investor-education/china_positive_on_gold/

17 of 19 traders, investors, and analysts surveyed by Bloomberg, said ’based on World developments that Gold bullion prices will rise next week’; 2 of 19 predicted lower prices.

SILVER
Silver was up $.05 today, closing at $37.26 on thin trading, It had climbed to a new 31-year high of $38.19 per ounce on Thursday. Thursday’s climb in turn pushed the gold/silver ratio to 37.88, it’s lowest since 1983. Silver has increased 6% over the course of the week and is the leader in the precious metal markets; the other metals are taking direction from Silver.

CME Group has increased margin requirements for COMEX Silver contracts by 5.5%, due to higher volatility and continued backwardation.

Today’s Important News

U.S. real gross domestic product (GDP) for the 4th Qtr was revised to an increase of 3.1% annualized from the earlier estimate of a 2.8% rise, the Commerce Department said Friday

The number of first-time claims for unemployment benefits fell by 5,000 last week to 382,000, the U.S. Labor Department said Thursday.

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. The Guest Expert this week is Frank Martell, Heritage Auction Galleries Wine Expert.