Gold and Silver - Weekly Precious Metal Report 2/4/10

This week in the precious metals has seen a vast range in both the Gold and Silver markets due to the recent data that has produced mammoth swings regarding the U.S Dollar internationally. This week we have seen: April Gold trade a high of $1026.40 on 2/3 and as low as $1059.00 on 2/4 (GLOBEX) while Silver traded $16.95 on 2/3 and as low as $15.30 on 2/4. The recent sell-off was of avalanche proportion caused by the overall global uncertainty. The Euro traded a seven month low versus The U.S Dollar as the European Central Bank announced it would keep its interest rates unchanged at 1%. The list of European countries disclosing there budget deficit crises seems to be ever growing. Portugal, Greece, Spain and most recently Ireland has been added to the list of European Union countries in trouble. ECB Chief Jean-Claude Trichet predicted high public debt and deficit would place additional burdens on monetary policy and many members will have large, sharply rising fiscal imbalances. Crude Oil fell more than $4 a barrel (at one point) as rising Crude Oil inventories and this week higher unemployment numbers have weakened the demand for Gold as investors tend to buy Gold as a hedge for Crude Oil- led inflation.