Daily Market Update 4/25/11

GOLD
Gold set another record high closing at $1,510.11, ending the day up $3.81 from Thursday’s close. Gold was extremely active today at one point reaching a $1,519.30 high amidst a $20 trading range.

The continued decline in the value of the dollar is adding to our view of the rally in the Gold price. When denominated in euros, gold advanced less than ½% last week, as compared to a 1.5% gain in dollar terms. Even so, the record high for gold is more than merely a function of currency moves. With the sharp surge in oil prices concerns about inflation are high, while the uprisings in the Middle East and Japan’s disaster have made some investors unsure.

SILVER
Silver is extraordinary closing at $47.72 on the day, up a whopping $1.52 in just one day’s trading. Silver trading was also very active today, reaching a high of $48.44 amdist a $3 range. The only question I ask is, "Will Silver prices slow down after hitting $50?"

Spot silver surged more than 5% to just above $49 ounce in Asia, buoyed by a weak dollar and strong physical demand in Asia that also propelled gold to a record high for a seventh consecutive session. U.S. silver futures jumped 8.2% to $49.82 an ounce in unusually large trading volume, just about 50 cents off its all-time peak of $50.35 hit on January 18, 1980.

Physical Demand for Silver is increasing and due to shortages of supply, a large bullion bank, Scotia Mocatta, moved more than 5 million ounces of silver from "registered" to "eligible" stockpiles at Comex depositories on Wednesday, shifting more than $225 million of silver bullion out of being deliverable against futures contracts into a client-owned position.

Today’s Other Important News:
Worldwide Inflation fears are growing... Chinese truckers’ in Shanghai are now striking, and the southern Guangdong province is protesting Chinese authorities over increased inflation fears. Chinese truck drivers are protesting over soaring fuel costs, amid government concern that civil unrest about runaway inflation could spread throughout the country.

For many of my clients and friends who are Gold & Silver addicts, I am now posting on Twitter multiple times during the day and night.