Gold Comment 29/05/09

9 day moving average - $949.82 14 day moving average - $940.99 40 day moving average - $909.32

Gold Report:

As a result of funds coming back to the market gold moved sharply higher yesterday effectively denying the previous few days correction. The move was also helped by rallies in the Euro vs the US dollar and crude oil combined with technical trading. So gold gained £13.30 to settle at $959.80/oz with the chart showing good support offered by the 9 day moving average. All M.A. remain bullish and the next upside challenge the high of Mar 20 th at $967.00 is now within reaching distance.

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

Support: $944.00 (yesterday's low) Resistance: $974.22 (high of 17/02/09)

Support:$935.55 (low of 21/05/09) Resistance: $967.00 (high of 20/03/09)

Support:$929.60 (low of 06/03/09) Resistance: $964.95 (yesterday's high)

Silver Comment 29/05/09

9 day moving average - $14.655 14 day moving average - $14.420 40 day moving average - $13.307

Silver Report:

Like gold, silver was pushed higher by fund buying and momentum trading in a significant move ended with 53 cents gain at $15.190/oz. Breaching and holding above the $15.00 level is a new record high for 2009 and the charts clearly show silver outpacing gold lately. But as we mentioned before is ‘the catch up game' as if with gold approaching $1000/oz, $21.00/oz comes to investors mind (last year high).

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

Support: $14.620 (yesterday's low) Resistance: $16.210 (high of 08/08/09)

Support:$14.430 (low of 27/05/09) Resistance: $15.440 (high of 11/08/08)

Support:$14.280 (low of 26/05/09) Resistance: $15.260 (yesterday's high)