  An analysis of a single-domain magnetic needle in the presence of an external
magnetic field ${\bf B}$ is carried out with the aim of achieving a high
precision magnetometer. We determine the uncertainty $\Delta B$ of such a
device due to Gilbert dissipation and the associated internal magnetic field
fluctuations that gives rise to diffusion of the magnetic needle axis direction
${\bf n}$ and the needle orbital angular momentum. The levitation of the
magnetic needle in a magnetic trap and its stability are also analyzed.
