GOLD & SILVER

Yesterday, I noted that "the April gold futures closed below a key support area today which may be the start of a near-term correction in the market." and then the next day started out with gold going up slowly. It accelerated throughout the day, breaking out, as Oil traded at $60 with news that the U.N. deadline came and went for Iran to comply with inspections.

From Emanuel Balarie, "Phase II of this gold bull market is well on its way. While the sell-off from $720/ounce was well warranted, the gold market is now in a healthy uptrend that is primarily driven by fundamentals, rather than speculation. In the next several months I expect gold prices to retest the $720 high and would not be surprised to see it break through that level with relative ease."


Yesterday, April Gold finished up 23 at 684, 2.4 off the high and 23.5 up from the low. While the silver market was initially divergent with the gold market, silver had no difficulty tracking with gold on Wednesday. March Silver closed up 0.443 at 14.273. This was 0.533 up from the low and 0.037 off the high.

Read: Is Gold An Inflation Hedge? from Mish's Global Economic Trend Analysis blog