Gold & Silver Daily Market Recap: April 9th,2013

It has been a wild past for weeks for spot gold and silver, with yellow metal holding $1539 on the down side and silver touching $26.68. The metals have seen a bounce back this morning.
Spot gold showed some spring in it step rallying $1590 ahead of the important Federal Open Market Committee meeting Wednesday. FOMC minutes will normally give clues to the QE conviction is and with U.S. data hitting a bit of a rough patch it doesn`t appear they will end it any time soon. Mr. Bernanke will continue with the easy monetary policy and money printing programme as he will repeatedly raise concerns about maintaining the momentum of good economic data. The meeting minutes will maintain a dovish approach as they have in the past.
The Asian market remains a hotbed of action as the Japanese yen continues to strengthen against the US dollar. The tension between North Korea and U.S and Japan is at an all time high and could have great impact on worldwide markets. The Japanese cabinet has approved a fresh stimulus package of more than 20 trillion yen (224bn), aiming to lift the economy out of recession and create 600,000 new jobs. Lower than expected readings for Chinese inflation gave gold and other physical commodities a push higher, as that data will lessen the chances of tighter monetary policy in that nation during the near future.
Precious metals extended their gains today, despite recent reports of ETF outflows and short positions both accumulating last week, which is being counter balanced by strong physical demand. Central banks continue to provide the main support for precious metals through their bond buying programmes and emerging markets remain buyers of physical gold. Despite the rally in the metals, investors still view equities as a better choice of investment over precious metals. The S&P 500 is only a few ticks away from reaching its 2007 high of 1576.1 which could mean a correction in equities is due. Smart investors may decide to hedge their portfolios by taking advantage of “cheaper” gold and silver prices.