Gold Comment 01/06/09

9 day moving average - $957.92 14 day moving average - $946.19 40 day moving average - $912.50

Gold Report:

The rally in gold continued on Friday reaching an intraday high of $980.17/oz after an increasing weakness in the US dollar across a number of currencies. Historically the precious metal has tended to rise when the US currency falls as investors search for an alternative currency. The potential for inflation also supports gold but following an improved optimism on a global scale funds are now buying commodities across the board. So gold gained $18.88 closing at $979.00/oz looking ready to challenge the key psychological $1000 mark.

The short and long term trends are bullish while medium term trend is sideways.

Support: $958.35 (Friday's low) Resistance: $995.65 (high of 24/02/09)

Support:$944.00 (low of 28/05/09) Resistance: $987.28 (high of 18/02/09)

Support:$935.55 (low of 21/05/09) Resistance: $980.17 (Friday's high)

Silver Comment 01/06/09

9 day moving average - $14.895 14 day moving average - $14.567 40 day moving average - $13.412

Silver Report:

A sharply lower US dollar has continued to push silver higher as more funds rushed in for fear of not losing out on this bullish trend. And yet again by outperforming gold in percentage terms silver proved right those investors who consider it undervalued relative to the yellow metal. The move was significant as silver increased 54 cents to settle at $15.740/oz and we are now seeing record highs for 2009 on a regular basis.

The short and long term trends are bullish while medium term trend is sideways.

Support: $15.130 (Friday's low) Resistance: $16.210 (high of 08/08/09)

Support:$14.620 (low of 28/05/09) Resistance: $16.000 (psychological level)

Support:$14.540 (low of 25/05/09) Resistance: $15.760 (Friday's high)