Gold Comment 23/06/09

9 day moving average - $933.88 14 day moving average - $942.95 40 day moving average - $935.84

Gold Report:

Gold declined sharply yesterday on the back of the US dollar strengthening and funds selling the precious metal along with equities on weakening economic outlook. The World Bank warned that prospects for the global economy remained uncertain despite recent signs of improvement and in turn cut its 2009 forecasts for most countries. As a result gold dropped $12.20 with some analyst mentioning the possibility for a test of $900.00/oz. Important to point out is the cross between the 9 and 40 days moving averages.

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

Support: $917.85 (yesterday's low) Resistance: $956.02 (high of 21/05/09)

Support:$914.93 (low of 18/05/09) Resistance: $939.10 (high of 19/06/09)

Support:$911.25 (low of 12/05/09) Resistance: $935.00 (yesterday's high)

Silver Comment 23/06/09

9 day moving average - $14.306 14 day moving average - $14.664 40 day moving average - $14.345

Silver Report:

Like gold and other commodities, silver was also badly hit as the overall impression was that funds started to sell anything in their rush to reassess expectations for world's recovery. The move was fuelled by a rebound in the US currency coupled with commodities falling out of favour with investors and currently silver is behaving like a traditional commodity. So the white metal lost 42 cents breaching the $14.000 level in the process.

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

Support: $13.680 (yesterday's low) Resistance: $14.380 (high of 19/06/09)

Support:$13.410 (low of 20/03/09) Resistance: $14.220 (yesterday's high)

Support:$13.250 (low of 06/03/09) Resistance: $14.072 (high of 18/05/09)