Gold Comment 27/05/09

9 day moving average - $942.07 14 day moving average - $934.54 40 day moving average - $906.32

Gold Report:

Despite heightened geopolitical tensions following North Korea's nuclear tests, gold started the trading session sharply lower yesterday due to a rebound in the US dollar and profit taking after last week gains. Later on the yellow metal pared some losses as the greenback gave back its initial gains and equities climbed after a jump in consumer confidence managed to offset a weak report on housing. So gold finished the day $3.85 down at $952.35/oz but conditions still appear bullish with a general weakening US currency.

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

Support: $940.60 (yesterday's low) Resistance: $967.00 (high of 20/03/09)

Support:$935.55 (low of 21/05/09) Resistance: $962.50 (high of 19/03/09)

Support:$929.60 (low of 06/03/09) Resistance: $957.40 (yesterday's high)

Silver Comment 27/05/09

9 day moving average - $14.335 14 day moving average - $14.223 40 day moving average - $13.183

Silver Report:

Silver sustained heavy selling initially while market participants piled into the US dollar as a preferred safe haven after North Korea nuclear tests. But the panic didn't last long and some of that flight to safety money came out of the dollar and went into the stock markets and gold. Fresh support was added from a rally in copper so consequently silver pared some of its losses settling 13 cents down at $14.507/oz.

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

Support: $14.280 (yesterday's low) Resistance: $14.940 (high of 13/08/08)

Support:$14.060 (low of 22/05/09) Resistance: $14.780 (high of 25/05/09)

Support:$13.970 (low of 18/02/09) Resistance: $14.700 (yesterday's high)