Daily Market Update 3/30/11

| March 30 2011

GOLD
Gold was up today, closing at $1,424.20 based on concerns over Consumer confidence, showing the biggest one-month drop in over a year, falling sharply in March owing to worries about rising prices and stagnant incomes, according to the latest survey by the nonprofit Conference Board. The board’s index dropped to 63.4 last month from a revised 72.0 in February. Economists polled by MarketWatch expect the index to decline to 62.2 from February’s initially reported level of 70.4. The rising prices of gas and food are among the biggest concerns of American consumers.

Gold’s resistance lies at the all-time high from last week of $1,447.50 and gold will likely need geopolitically fueled news to challenge this in the short term.

The worsening fiscal crisis in the Eurozone escalated demand for Gold. The ratings agency Standard and Poor’s downgraded Portugal for the second time in the space of a week, this time to the lowest investment grade of BBB-. The firm also slashed Greece’s rating to BB-.

SILVER
Silver had strong demand today, closing up at $37.44.

All the world’s top mints are selling silver coins at record pace: the US Mint has sold 12.4 million ounces of silver American Eagles in the first three months of the year – an extraordinary number and projecting 50 million ounces for year end. Silver has consolidated around $37 over the past week. If it can continue to hold onto this area, the next big target overhead is at $40. Given that physical demand for silver in the US is still very robust, this seems like a reasonable level to reach in the coming weeks.

Today’s Important News

Gold buying in India, the world’s largest consumer of the metal, is estimated to increase 15% as buyers ignore record high prices ahead of the wedding season that starts next month.