Precious metals prices have been on the rise today and are set to close higher, curbing the three-week overall decline. The climb today was relative to sharp movements in markets. Oil prices rose, and the dollar’s value dropped. The poor showing in home sales data has rekindled hopes the Fed will offer more easing. Head of commodity research Nic Brown of Natixis in London said, “We think that quantitative easing and abnormally low U.S. interest rates have been a  huge support for Gold prices. It’s no surprise that the falling Gold price recently has been accompanied by quite a significant rise in U.S. interest rates/ … Gold doesn’t have a yield or a dividend or anything like that, so as interest rates rise, your opportunity cost of holding Gold increases.”

Middle East tensions have begun to wane, but there are details coming to light over how desperate the Iranian government has become to fulfill its need for necessities. Iran has been using pretty much any means necessary to acquire food, primarily wheat, with a half-million metric tons of food arriving via alternative bank sources. Iran is paying a premium to acquire wheat. An unidentified trade source said, “Apart from Turkish banks, Iran is also facilitating deals via Switzerland and is also using cash in smaller trades  as well as even Gold. … They are working around the restrictions.”

The overall global and domestic outlook has created a sense of shaky confidence. There are a number of key factors in play this week that really did not get the type of resolution a lot of investors were seeking in the marketplace. Chief investment officer Nick Sargen of Fort Washington Investment Advisors in Cincinnati, said, “There’s a little bit of nervousness this week. … This was the week where the market had a little bit of second-guessing on how strong is Europe, how strong is China, and thatraises the question, ‘How confident are we that the economy is going to continue to grow at the pace we’ve seen in recent months?”

At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,662.60 – Up $18.60.
• Silver - $32.25 – Up $0.86.

Gold’s price was rising following positive movement of the euro. Recent optimistic data is boosting hopes for a  stronger U.S. economic future, which in turn has pushed the yellow metal down by nearly 3 percent this month. “We don't see a huge amount of downside for Gold prices from current levels, and we would be looking for the market to form a base soon and then move higher as we progress through the year,” said Daniel Smith at Standard Chartered. He predicted that Gold’s price will move in a range from $1,600 to $1,800 per ounce.

Oil prices soared based on news that Iranian oil exports dropped in March. The tension between Tehran and the West regarding its disputed nuclear program and limited exports from Iran will keep an added premium on crude oil prices. “With the current market fundamentals characterized by extremely low inventories and stretched spare capacity,  oil prices are to likely to remain high,” analysts at Barclays Capital wrote.

At noon (CDT), the APMEX precious metals spot prices were:

• Gold - $1,664.10 – Up $20.20.
• Silver - $32.24 – Up $0.85.

U.S. stock futures are pointing towards an uneventful start for Wall Street this morning.    Unease has entered the markets, and Rebecca O’Keefe of Interactive Investor isn’t shocked.  “The six-month equity rally has been built on lower-than-normal volumes, so investors are worried that the foundations are not as strong as they might be and with some markets reaching four-year highs, it is not a surprise that some money is being taken off the table,” she said.  New-home sales data set for release later this morning may have an effect on the markets.

St. Louis Federal Reserve President James Bullard said recently that the Fed “over-committing” toeasy monetary policy could be detrimental.  He said, “Some of the further actions that could be undertaken at this juncture would have effects far into the future, in an environment of continual improvement and repair for the U.S. economy.”

The situation in Syria that many are calling a humanitarian crisis  continues to worsen.  The resistance stronghold city of Homs was hit with mortars overnight, and the death toll climbed by another 40 after clashes across the country.  In a latest attempt to reach Syrian President Bashar al-Assad, EU sanctions have been placed on the president’s wife and mother.

At 8 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,654.60 – Up $10.60.
• Silver - $31.77 – Up $0.38.

Precious metals fell in overnight trading, as less-than-promising Chinese factory data has caused many investors to cash out their positions for profit-taking purposes. Many investors are awaiting European data to see how the eurozone is faring after the Greek bailout deal. Yuichi Ikemizu, head of commodity trading, said, “A lot of people are on the sidelines at the moment. … We saw some bearish signs, but  the market seems to be holding well. The upside at $1,800 is still looking quite heavy, and investors are waiting for a cue.”

Chinese factory data continues to decline, falling from a PMI rating at the end of February of 49.6 to a preliminary 48.1 for the month of March. The PMI rating is based on a 100-point scale, with 50 being the divider between growth and contraction. Based on the latest data, China’s economic outlook is worsening. HSBC economist Hongbin Qu said, “Weakening domestic demand continued to  weigh on growth, as indicated by a slowdown in new orders, which came in at a four-month low. More worryingly, employment recorded a new low since March 2009, suggesting slowing manufacturing production was hindering enterprises’ hiring desire.”

In a surprising turn of events domestically,  jobless claims continued to fall. Although still not at levels economists are looking to achieve, this development is still viewed as a good sign. The four-week moving average, a better measure of labor market conditions, declined 1,250. Employers also are hiring more, adding 227,000 jobs in February.

At 8:18 a.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,635.60 – Down $16.20.
• Silver - $31.59 – Down $0.67.

A weekly government report showing a surprise decline in oil inventories sent crude oil future prices upward. Prices reached as high as $106.91 on the New York Mercantile Exchange. The Energy Information Administration also reported that  gasoline stockpiles were down 1.2 million barrels. Gold and silver prices were up modestly throughout the day.

According to written testimony to Congress, Federal Reserve Chairman Ben Bernanke says the Fed will act  if Europe falters again. Mr. Bernanke stated that although Europe’s financial troubles have eased, they are not out of the woods. If conditions should deteriorate, the central bank would be prepared to step in. He stressed that a further strengthening on the European banking system is required toguard against contagion in sovereign debt markets.

Investors will be closely watching  tomorrow’s jobless claims  in search of indicators of the upcoming March jobs report. “It’s a survey week, so they’re going to take on a bit more significance,” said Joseph LaVorgna, Chief Economist at Deutsche Bank. Most economists are predicting a slight uptick and an improving four week moving average.

At 4PM (CT) the APMEX precious metal prices were:

• Gold price - $1,652.30 – up $3.60
• Silver price - $32.22 – up 35 cents

Precious metals prices have continued to fall in afternoon trading on tempered housing optimism and rising dollar hint at economic recovery. Saxo Bank senior manager Ole Hansen said, “It’s very muchintraday movements related to the ups and downs of the dollar, which is setting the agenda for the time being. … We are going to see a bumpy ride over the coming weeks, but I think investors eventually will step up to the plate. Rising bond yields are not going to be looked upon lightly by the Fed, and some kind of (central bank) action could be the result, which will support Gold.” New housing construction slowed, but  permits for new construction reached the highest point in 3.5 years. Economist Andrew Grantham said, “The level of house building clearly remains depressed by historical standards but at least is now beginning to make modest positive contributions to U.S. growth.”

The U.S government has handed out 11 sanction exemptions to a number of countries that were fearful of economic sanctions due to their continued business dealings with Iran. However, the 11 countries already have  significantly reduced Iranian oil imports. The exemption list did not include China or India, the top two Iranian oil importers. One of the exempt nations is Japan, which cut about 20 percent of its Iranian oil imports even as it was recovering from a major earthquake and tsunami. Saudi Arabia continues to try to calm the oil markets as best it can with an increase in production.

At 4:15 p.m. (CDT), the APMEX precious metals spot prices were:

• Gold - $1,652.50 – Down $16.30.
• Silver - $32.20 – Down $0.80.