Gold Comment 26/06/09

9 day moving average - $933.45 14 day moving average - $938.25 40 day moving average - $939.72

Gold Report:

Gold continued to rally on bargain hunting yesterday following expectations that a low interest environment will eventually lead to inflation. Some comments from a Chinese official suggesting the country buy more gold in case of US dollar getting weaker also seemed to help the precious metal. After the World Bank's downward forecast for the global economy additional support came from a rise in US initial jobless claims. So unsurprisingly gold finished $6.80 higher at $939.15/oz.

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

Support: $929.25 (yesterday's low) Resistance: $958.20 (high of 12/06/09)

Support:$912.70 (low of 23/06/09) Resistance: $943.15 (high of 17/06/09)

Support:$904.65 (low of 08/05/09) Resistance: $940.27 (yesterday's high)

Silver Comment 26/06/09

9 day moving average - $14.082 14 day moving average - $14.393 40 day moving average - $14.466

Silver Report:

Silver moved higher with gold settling 22 cents up at $14.082/oz in a day when the US currency weakened against the Euro. Nevertheless, both precious metals posted an ‘Inside Day' on the chart in which the highs and lows were contained within the previous day's trading range suggesting consolidation.

The move was enough to see silver crossing above the 9 day moving average.

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

Support: $13.790 (yesterday's low) Resistance: $14.380 (high of 19/06/09)

Support:$13.600 (low of 23/06/09) Resistance: $14.220 (high of 22/06/09)

Support:$13.410 (low of 20/03/09) Resistance: $14.100 (yesterday's high)