-- Posted Wednesday, 25 March 2009 | | Source: GoldSeek.com

April Gold closed up 12 at 935.8. This was 16.3 up from the low and 0.7 off the high.

May Silver finished up 0.08 at 13.437, 0.143 off the high and 0.267 up from the low.

The gold market initially waffled around both sides of unchanged before the gold market began to be lifted by weakness in the Dollar, strength in the US scheduled numbers and perhaps even because of strength in the US equity market. Since gold and silver were part of a very narrow group of physical commodities that managed to rise in the action Wednesday, the idea of "reflation" was somewhat suspect but nonetheless the action in the precious metals gave off the impression of "reflation". It is also possible that criticism from an eastern European Finance Minister on the US financial plan served to prompt some buying of gold and it is also possible that suggestions from the US Treasury Secretary that he was "very open minded" to some form of global currency served to spark fresh buying interest in the gold market.

The silver market started out under moderate liquidation pressure but managed to reject that weakness prior to mid session. Clearly gold and silver were rising in sync but the fact that most physical commodities failed to benefit from better than expected economic readings would seem to suggest that the gains in the precious metals were coming from some sort of renewed flight to quality angle. With the extremely negative comments from Eastern Europe on the US financial sector plan and the world currency comments from the US Treasury Secretary, there was no shortage of potential safe haven issues in the headlines on Wednesday.

 - The Hightower Report, Futures Analysis and Forecasting

-- Posted Wednesday, 25 March 2009 | Digg This Article | Source: GoldSeek.com

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