Gold Comment 05/05/09
9 day moving average - $898.49 14 day moving average - $891.87 40 day moving average - $905.39
On a day when liquidity in the markets was thin due to holidays in London and Tokyo gold finished sharply higher on the back of a weaker US dollar and concerns about inflation making their way back into the headlines. Following some positive signs in the recent economic reports the gold market could start to see additional buying as an inflation hedge. Chart based buying was also mentioned as catalyst after the yellow metal managed to breach the $900.00 mark closing the day at $902.73/oz with 16.93 dollars gain.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $884.05 (yesterday's low) Resistance: $922.77 (high of 04/03/09)
Support:$871.50 (low of 16/04/09) Resistance: $918.50 (high of 27/04/09)
Support:$864.25 (low of 20/04/09) Resistance: $907.30 (yesterday's high)
Silver Comment 05/05/09
9 day moving average - $12.727 14 day moving average - $12.512 40 day moving average - $12.790
Last Friday's rally in silver continued with a sharp advanced yesterday supported by the same inflation worries creeping back into the market and a softer US currency. Some stronger than expected construction and homes sales data also benefited silver and could explain the outperforming of gold. Technically the move was accentuated once some levels were hit and was significant enough to see silver price crossing and settling comfortably above the moving averages.
The short term trend is sideways while medium and long term trends are bullish.
Support: $12.410 (yesterday's low) Resistance: $13.360 (high of 30/03/09)
Support:$12.340 (low of 28/04/09) Resistance: $13.240 (high of 27/04/09)
Support:$12.180 (low of 30/04/09) Resistance: $13.153 (yesterday's high)