Daily Market Update 4/8/11

GOLD
Gold closed at $1,475.30 today, up $14.10 for the day; another all-time high for the Gold price on active trading. $1,500 is the next psychological and possible resistance number, and I believe we will see that number next week.  Today’s initial rally in gold came from oversees after European Central Bank President, Jean-Claude Trichet, indicated that the rate hike announced by the bank earlier might not be the first in a series. Most analysts felt that Thursday’s ¼ point ECB rate hike was the start of a series of increases.

SILVER
Silver closed at $40.62 today, up $1.01 for the day. The $40 resistance level didn’t last more than an hour before is was shattered.

Trading was light today, normal for a Friday. It’s important to watch oversees trading coming into Monday to see if Silver can hold the $40 level.

The recent Media attention, and subsequent focus on Gold, Silver, and Crude Oil prices as we see new highs, is not the entire story.  Raw materials, soybeans, cotton, grains and aluminum are at or near the highest prices since 2008. Corn reached a 33-month high in Chicago trading yesterday. The real concern is global commodity and food inflation. World Central banks are finding it hard to raise interest rates to fight inflationary pressures in the face of losing badly needed economic growth.

 
U.S. DOLLAR
The U.S. dollar weakened against its major currency rivals Friday, pressured by concerns over a potential government shutdown. Plus, the U.S. dollar fell to a new five-month low overnight, while the Euro currency hit a fresh 15-month high. The greenback is under pressure following an interest rate hike from the European Central Bank, and the news that Portugal will accept an EU bailout package.

Today’s Important News

The Commerce Department reported today that Inventories at U.S. wholesalers rose 1% in February, matching the downwardly revised 1% gain in January. Sales of wholesalers fell 0.8% in February, while the inventory-to-sales ratio was 1.16.

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 Larry Hilton, the author of the Utah law that makes Gold and Silver coins legal tender and tax exempt in Utah.