Newsroom

The Week in Review

April 1, 2010

Now that the healthcare bill has been signed into law, corporate America is starting to tally up the damage. Here are the results so far on their first quarter numbers: ATT – $1 billion noncash charge, Deere – $150 million noncash charge, Boeing – $150 million income tax charge, Caterpillar – $100 million after tax charge, Prudential Financial – $100 million charge, 3M – $90 million charge. The list goes on, but the point has been made. The new health care bill just trimmed the per share stock earnings of most of the corporations in America.

Weekly jobless claims fell for the fifth straight week ahead of the upcoming March employment report. Analysts expect the upcoming report to show that the economy actually added jobs, but any jobs added were most likely due to temporary workers hired for the Census or simply delayed hiring due to the weather in the northeast US over the last few months. Lending credence to the “temporary improvement” opinion, the US private sector actually cut 23,000 jobs and planned layoffs were up nearly 61%.

Scott Mather, head of global portfolio management at PIMCO, believes Europe’s action on Greece will be ineffective in fixing that country’s problems and that Britain’s sovereign debt rating may be downgraded within a year. He also said “Miracles are needed in the next six months in order to keep economic growth in the developed world.”

Inflation in the Euro zone was significantly higher than expected in March, and their unemployment rate reached 10 percent in February. Unemployment in Spain alone is at 19%. The ongoing Sovereign Debt issues of Euro zone members, along with continued high unemployment may continue to wear on the euro.

Construction spending fell to its lowest rate in close to 7 and a half years last month in every major sector from homebuilding to public construction. Mortgage rates are back over 5% and the homebuyer tax credit will be expiring this month, so any further growth in the US housing sector looks as if it may be limited. Housing simply has not been able to resurrect itself from the ashes of the meltdown.

Crude oil prices surged to a 17 month high this week, touching $85 per barrel.

Strong manufacturing data out of the US boosted the dollar up against both the euro and the Yen. The dollar hit a 7 month high against the Yen. Manufacturing data from other countries was also good, boosting the opinion that the recovery may finally be taking hold.

Friday to Friday Close

	Mar. 26th	Apr. 1st	Net Change
Gold	$1104.00	$1126.00	22.00 – 1.99%
Silver	$16.90	$17.88	0.98 – 5.80%
Platinum	$1595.00	$1665.00	70.00 + 4.39%
Palladium	$455.00	$488.00	33.00 – 7.25%

Month End to Month End Close

	Feb. 26th	Mar. 31st	Net Change
Gold	$1118.00	$1114.00	(4.00) – 0.36%
Silver	$16.55	$17.50	0.95 – 5.74%
Platinum	$1545.00	$1635.00	90.00 + 5.83%
Palladium	$435.00	$478.00	43.00 – 9.89%

Here are your Short Term Support and Resistance Levels for the upcoming week.

	Gold	Silver
Support	1110/1100/1085	17.50/17.00/16.50
Resistance	1135/1150/1165	18.00/18.80/19.00

	Platinum	Palladium
Support	1650/1600/1570	480/450/440
Resistance	1670/1700/1750	500/520/550

Volatility should be expected to continue. As we mentioned in our March 26^th memo, the word is out regarding the manipulation of the precious metals markets by banks such as JPMorgan and HSBC, courtesy of a meeting the CFTC held on March 25^th to discuss position limits in the precious metals futures market. Dennis Gartman, an admitted and vocal disbeliever in such manipulation, even begrudgingly acknowledged that it may actually be taking place on Business News Network in Canada this week. As more details emerge and people begin to demand not only action, but delivery of their product from the banks involved, prices may explode to the upside. The astute investor might view any price dips at these levels as an opportunity to add to, or begin, a precious metals portfolio. Remember, the key to profitability through the ownership of physical precious metals is to own them and hold them for the long term. Never over-extend your ability to maintain ownership of your product over the long term.

Trading Department – Precious Metals International, Ltd.

This is not a solicitation to purchase or sell.

© 2010, Precious Metals International, Ltd.

© 2010, Worldwide Precious Metals.
www.wwpmc.com

The Week in Review
Posted by Worldwide Precious Metals on Thursday, April 1, 2010

As featured on: