Gold Comment 05/06/09

9 day moving average - $968.48 14 day moving average - $960.30 40 day moving average - $921.90

Gold Report:

Gold has resumed its uptrend managing to recoup most of the previous day's losses as buyers came back into the market on the speculation the precious metal could be heading back towards $1000 level. The US dollar's sell off which like usual is pushing gold higher, appears to have been driven by the reaction to the ECB's decision to maintain the current policy and interest rates. So following the inflation hedge buying gold closed $13.46 higher settling at $978.10/oz.

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

Support: $960.30 (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: $982.80 (yesterday's high)

Silver Comment 05/06/09

9 day moving average - $15.414 14 day moving average - $15.071 40 day moving average - $13.750

Silver Report:

Like gold, silver bounced back quite strongly from previous session's steep decline as ongoing fears about future inflation continue to boost the white metal. So as investors rush to buy gold on worries about future inflation, at the same time they buy silver for the same reason considering it a cheaper hedge. And if looking at a long term trend one would add the perception of silver being undervalued compared to gold it's no surprise that some analysts do consider the white metal a bargain at the current levels.

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

Support: $15.440 (low of 02/06/09) Resistance: $16.210 (high of 08/08/09)

Support:$15.130 (low of 29/05/09) Resistance: $16.003 (high of 02/06/09)

Support:$15.040 (yesterday's low) Resistance: $15.950 (yesterday's high)