Gold Comment 06/05/09
9 day moving average - $897.02 14 day moving average - $892.98 40 day moving average - $904.98
In early trading gold moved higher following the stock market and also supported by renewed inflationary expectations. A softer greenback, rumours that China keeps increasing its gold reserve and anticipation of US bank stress tests added to the support for the precious metal. Later on, as equities pared earlier gains gold fell back on profit taking and a recovery in the US dollar. So overall the precious metal lost $5.45 for the day to finish at $897.55/oz.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $894.55 (yesterday's low) Resistance: $922.77 (high of 04/03/09)
Support:$884.05 (low of 04/05/09) Resistance: $918.50 (high of 27/04/09)
Support:$871.50 (low of 16/04/09) Resistance: $915.75 (yesterday's high)
Silver Comment 06/05/09
9 day moving average - $12.812 14 day moving average - $12.605 40 day moving average - $12.808
Silver outperformed gold yesterday largely due to technicals considerations as the white metal managed to breach its late April high but gold didn't. In addition some analysts indicated silver may be gaining momentum given that it is perceived as undervalued relative to gold. So after an initial rise triggered by the same dollar weakness and inflations worries silver was capable of retaining a big part of its gains during the follow up pullback. As a result silver closed 27 cents up at $13.330/oz.
The short term trend is sideways while medium and long term trends are bullish.
Support: $12.980 (yesterday's low) Resistance: $13.900 (high of 23/03/09)
Support:$12.812 (9 day moving average) Resistance: $13.755 (high of 26/03/09)
Support:$12.675 (low of 24/04/09) Resistance: $13.592 (yesterday's high)