Greetings!,

It was reported yesterday that New York's SPDR gold trust 

(the largest gold exchange traded fund) holdings increased by about six metric tons yesterday. This reversed a good portion of the drop in holdings reported last week ( 10 metric tons). 

Reuters also reported the concern over consumption of gold in India. Currently independent jewelers have been striking to protest an import levy on gold imposed by their government.

Yesterday's upside move in gold and silver were motivated by a statement made by Fed Chairman Ben Bernanke when he said "the US economy needs to grow more quickly to cut the unemployment rate." Although he did not directly mention another round of quantitative easing he did say  that the continuation of accommodative policies are needed to support faster growth.

It is my belief that there is more to come but we will have to await Aprils FOMC meeting for any type of a direct announcement by the US Federal Reserve.

As always, wishing you good trading,

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Proper Action

 GOLD & SILVER :

 Gold: Maintain long in gold @ 1658 and 1642 (1650 avg) stop below 1623

Silver:  MaintainLong @ 32.91 Stop below 30.52

MARKET FORECAST

Gary S. Wagner

Gold & Silver: Besides Fed chairman's Bernanke statement yesterday, federal reserve bank of Boston president Eric Rosengren said the US central bank may need to ease monetary policy if unemployment stays too high. This statement adds more fuel to the QE3 fire. On a technical basis today's small pullback in my opinion is merely backfill and a steadying of precious metals prices. Today's minor pullback is in response to a weaker euro dollar and stronger US dollar. It is not my belief that we have begun any type of corrective pullback.

Gold Chart

 SILVER Chart:

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