Gold Comment 02/06/09

9 day moving average - $961.66 14 day moving average - $949.50 40 day moving average - $914.71

Gold Report:

Gold closed slightly lower yesterday as pressure from profit taking overcame support from a US dollar which losses more and more ground against the Euro. After the recent rally in the yellow metal, booking profits was somewhat expected with some analysts pointing to consolidation before challenging the key psychological $1000 level. The precious metal lost $2.90 for the day finishing at $975.55/oz but the important feature was a new recent high at $988.65/oz last seen on Feb 24 th .

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

Support: $971.85 (yesterday's low) Resistance: $1000.00 (psychological level)

Support:$958.35 (low of 29/05/09) Resistance: $995.65 (high of 24/02/09)

Support:$944.00 (low of 28/05/09) Resistance: $988.65 (yesterday's high)

Silver Comment 02/06/09

9 day moving average - $15.009 14 day moving average - $14.664 40 day moving average - $13.486

Silver Report:

Supported by a weaker US currency and a much firmer copper market which is the bellwether for the base metals, silver rose initially touching a new record high for the year at $15.960/oz. But failure to cross above the $16.00 mark was followed by a trip into negative territory. As a consequence silver lost 20 cents settling at $15.530/oz although its outlook remains positive.

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

Support: $15.460 (yesterday's low) Resistance: $16.210 (high of 08/08/09)

Support:$15.130 (low of 29/05/09) Resistance: $16.000 (psychological level)

Support:$14.620 (low of 28/05/09) Resistance: $15.960 (yesterday's high)