Gold Comment 11/06/09

9 day moving average - $963.75 14 day moving average - $961.93 40 day moving average - $928.00

Gold Report:

Initially gold went higher but following the strengthening in the US dollar it ended the trading session into negative territory. However the $2.90 decline in gold seemed to be a consequence of longs liquidating to book profits rather than investors getting short, a sign that markets are still sceptical about a follow through in the greenback's rebound. Technically we saw an ‘Outside Day' pattern (higher high and lower low) with the chart showing a price action resembling consolidation move.

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

Support: $946.63 (yesterday's low) Resistance: $989.95 (high of 03/05/09)

Support:$935.55 (low of 21/05/09) Resistance: $980.17 (high of 29/05/09)

Support:$924.75 (low of 20/05/09) Resistance: $965.40 (yesterday's high)

Silver Comment 11/06/09

9 day moving average - $15.404 14 day moving average - $15.245 40 day moving average - $13.990

Silver Report:

After moving higher with gold in the early session silver managed to overcome pressure from a stronger US currency and finished flat for the day. In effect a stronger greenback tends to pressure all dollar denominated commodities by making them more expensive in other currencies thus dampening demand. So considering that silver's performance was quite steady making the bears think twice before rushing in.

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

Support: $15.017 (yesterday's low) Resistance: $15.950 (high of 04/06/09)

Support:$14.760 (low of 09/06/09) Resistance: $15.760 (high of 29/05/09)

Support:$14.620 (low of 28/05/09) Resistance: $15.490 (yesterday's high)