Gold Comment 28/05/09

9 day moving average - $943.53 14 day moving average - $936.53 40 day moving average - $907.23

Gold Report:

Gold went $6.05 down yesterday closing at $946.15/oz pressured by comments from the managing director of the IMF that US Congress is expected to approve IMF gold sales within days. A stronger tone in the US dollar possibly accentuated the downward move but given that some investors are still worried about potential long term inflation, gold showed a tendency of attracting fresh buying on pullbacks. In addition reports of increased hedge fund buying continue to offer good support for the yellow metal.

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

Support: $943.55 (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: $959.45 (yesterday's high)

Silver Comment 28/05/09

9 day moving average - $14.436 14 day moving average - $14.285 40 day moving average - $13.230

Silver Report:

Silver posted a strong rally yesterday reaching an intraday high of $15.002/oz last seen on August 2008. The move was largely driven by improved investment demand together with the perception of silver being undervalued compared to gold. As we mentioned before the white metal lagged gold over the last 6 months so investors are viewing current silver prices as attractive. Towards closing the precious metal backed down from its early high on some profit taking but managed to settle 18 cents higher at $14.680/oz.

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

Support: $14.430 (yesterday's low) Resistance: $15.002 (yesterday's high)

Support:$14.280 (yesterday's low) Resistance: $14.830 (high of 22/05/09)

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