Gold Comment 17/06/09

9 day moving average - $945.78 14 day moving average - $956.55 40 day moving average - $933.38

Gold Report:

Gold moved higher in early trading helped by the combination of a weaker US dollar and stronger crude oil. Later on the yellow metal came down from the initial highs following US economic data: the Producer Price Index was less than consensus forecast making gold less attractive as an inflation hedge and the stronger than expected housing data signalled the possibility of reduced interest in gold as a safe heaven. Nevertheless gold finished the day $3.65 higher settling at $934.00/oz.

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

Support: $928.70 (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: $939.70 (yesterday's high)

Silver Comment 17/06/09

9 day moving average - $14.814 14 day moving average - $15.128 40 day moving average - $14.215

Silver Report:

Silver closed marginally higher gaining a mere 2 cents for the day and crossing back above the 40 day moving average. The early trading session was dominated by a strong rally on the back of a soft US currency. But as the day progressed traders decided to liquidate their long positions taking some profits off the table in reaction to the same less inflationary data in the US which could convince investors to allocate more assets to equities rather than precious metals.

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

Support: $14.070 (yesterday's low) Resistance: $14.830 (high of 22/05/09)

Support:$13.830 (low of 12/05/09) Resistance: $14.550 (high of 21/05/09)

Support:$13.710 (low of 14/05/09) Resistance: $14.420 (yesterday's high)