-- Posted Monday, 9 February 2009 | | Source: GoldSeek.com

PRECIOUS METALS RECAP - 2/9/2009

April Gold closed down 21.5 at 892.8. This was 0.6 up from the low and 8.1 off the high.

March Silver finished down 0.33 at 12.83, 0.165 off the high and 0.01 up from the low.

The gold market started out under pressure and remained under pressure as a result
of what seemed to be a lingering hope that the US was poised to move on its
stimulus package. It also seemed as if the gold market was being undermined by
anticipation of progress on the US financial sector bailout. In short, the ebb and
flow of flight to quality seemed to favor the bear camp on Monday and that was
somewhat surprising considering that the Dollar managed a downside breakout on
the charts. Even a noted rally in the energy complex failed to lend gold support
and that prompted some traders to suggest that gold was simply correcting an
overbought technical condition.

The silver market was unable to carve out a higher high for the move on Monday,
but the market generally held within striking distance of the recent highs. With
weakness throughout the metals complex it is possible that silver was also
correcting part of the overbought condition registered in latest COT report. The
silver market almost seemed to discount the latest talk of inflows into gold and
silver funds, perhaps because the trade was unwilling to make fresh buys ahead
of potentially significant upcoming developments from Washington.

- The Hightower Report

Futures Analysis and Forecasting

-- Posted Monday, 9 February 2009 | Digg This Article | Source: GoldSeek.com

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