Gold Comment 03/07/09

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9 day moving average - $934.13 14 day moving average - $933.58 40 day moving average - $942.95

Gold Report:

Gold finished lower in reaction to a rebound in the US dollar but really the reasons behind the decline were a number of factors. A larger than expected drop in non-farms payrolls showed the labour market under continued pressure which in turn is likely to postpone inflation. Then, traders liquidating long positions ahead of the Fourth of July weekend in the US added some downside pressure. Also July is described as one of the slowest month for gold. Consequently the yellow metal settled $9.26 down at $931.49/oz.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support: $926.20 (yesterday's low) Resistance: $961.87 (high of 11/06/09)

Support:$917.85 (low of 22/06/09) Resistance: $958.20 (high of 12/06/09)

Support:$912.70 (low of 23/06/09) Resistance: $941.10 (yesterday's high)

Silver Comment 03/07/09

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9 day moving average - $13.784 14 day moving average - $13.913 40 day moving average - $14.470

Silver Report:

Silver moved down with other precious metals looking under increasing pressure lately. The surprise employment report in the US confirmed recent fears of ‘not so soon' recovery hurting silver more than gold which is also shown by the charts. Silver hit a bottom of $13.280/oz last seen on May 6 th whereas gold held above last week's low. The white metal seems to be a leader on the downside but lagging on the upside.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support: $13.280 (yesterday's low) Resistance: $14.380 (high of 19/06/09)

Support:$13.250 (low of 06/05/09) Resistance: $14.140 (high of 30/06/09)

Support:$12.980 (low of 05/05/09) Resistance: $13.800 (yesterday's high)