Gold Comment 16/06/09

9 day moving average - $945.76 14 day moving average - $956.54 40 day moving average - $933.38

Gold Report:

Gold remained under pressure falling another $7.23 to settle at $930.57/oz and crossing below the 40 day moving averages in the process. The move was undoubtedly driven by a stronger US dollar against the Euro after European Central Bank's biannual stability review said the financial sector may face more tests due to corporate defaults. Some analysts also pointed out a reduced interest for the gold market during summer vacations due to very few gift giving festivals around the world.

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

Support: $925.25 (yesterday's low) Resistance: $956.02 (high of 21/05/09)

Support:$919.95 (low of 14/05/09) Resistance: $940.61 (high of 20/05/09)

Support:$914.93 (low of 18/05/09) Resistance: $938.90 (yesterday's high)

Silver Comment 16/06/09

9 day moving average - $14.872 14 day moving average - $15.165 40 day moving average - $14.228

Silver Report:

Silver declined sharply outpacing gold on a relative basis on the same strong rebound in the US currency. Triggering some sell stops on the way down may have accentuated the sell off which took silver price below the 40 day moving average with another significant loss, 53 cents. After Japan now the Russian finance minister said they have full confidence in the US dollar thus providing support to the greenback and in turn putting pressure on the commodities.

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

Support: $14.030 (yesterday's low) Resistance: $15.002 (high of 22/05/09)

Support:$13.830 (low of 12/05/09) Resistance: $14.830 (high of 22/05/09)

Support:$13.710 (low of 14/05/09) Resistance: $14.740 (yesterday's high)