Gold Comment 07/05/09

9 day moving average - $898.18 14 day moving average - $896.94 40 day moving average - $904.94

Gold Report:

In an ‘Inside Day' consolidation in which the high and low remain contained within the previous day's range gold moved $13.55 higher closing above the moving averages at $910.40/oz. The move was supported by the anticipation of US bank stress test results to be released later today and in line with the inflation expectation down the road once the economy improves. Other influences pushing the yellow metal higher include a softer US dollar and some strength in base metals in particular copper triggered by a strike in Chile.

The short term trend is sideways while the medium and long term trends are bullish.

Support: $895.30 (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: $912.50 (yesterday's high)

Silver Comment 07/05/09

9 day moving average - $12.951 14 day moving average - $12.765 40 day moving average - $12.837

Silver Report:

Silver posted another strong advance yesterday continuing to generate more upward technical momentum than gold. After breaching the late April high silver moved up 35 cents to settle at $13.665/oz, the strongest levels since March 23 rd and seems set to challenge the $14.000 mark. As we pointed in the previous ‘Silver Report' a growing number of analysts mentioned the gold to silver ratio coming down which could explain the recent bigger interest in buying silver relative to gold. At the same time renewed optimism about increased industrial demand is another supportive factor.

The short term trend is sideways while medium and long term trends are bullish.

Support: $13.250 (yesterday's low) Resistance: $14.000 (psychological level)

Support:$13.080 (low of 27/03/09) Resistance: $13.900 (high of 23/03/09)

Support:$12.980 (low of 05/05/09) Resistance: $13.830 (yesterday's high)