Daily Market Update 4/5/11

GOLD
Gold was up $20.30 today, closing at an all-time high of $1,453.40 on very active trading. We continue to look for a quick run to the next resistance point of $1,500.

The news items that supported today’s Gold rally are:

1. China’s central bank announced it intends to hike rates tomorrow by 25 basis points to 3.25%, as part of Beijing’s latest attempts to stave off economic overheating there.
2. The Institute for Supply Management’s non-manufacturing reported that the services sector slowed in March, falling to a reading of 57.3 from 59.7 in February. The dip was larger than expected.
3. Crude Oil hit a fresh two-and-a-half-year peak of $108.78 per barrel
4. The value of the U.S. Dollar continues to slip against many other currencies
5. The ongoing problems in Libya and the threat of escalating unrest in neighboring regions
6. Today’s downgrade of Portugal’s debt to Baa1 from A3 by the Moody’s rating agency

SILVER
Silver hit another 31 year high today, closing at $39.17, up another $0.73 in exciting trading and excellent demand. A report of increasing demand of new silver buying from jewelers, investors, and industries who use Silver for solar panels, is adding to supply shortages.

 
Today’s Other Important News
The Senate and House of Representative have overwhelmingly passed H.R. 4 “Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011.” This bill would eliminate the onerous requirement that businesses file a 1099 form to report purchases of goods or services of more than $600 per year. The legislation will soon be on its way to President Obama for his signature.