Gold Comment 09/07/09

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9 day moving average - $926.62 14 day moving average - $928.27 40 day moving average - $942.40

Gold Report:

Gold continued to trend lower along with all commodities on the back of renewed US dollar gains and softer global equity markets. In particular Chinese President HU Jintao cancelling plans to attend G8 summit has reduced the already slim chances of a debate about dollar's role as a reserve currency. That in turn hit the yellow metal as lately the markets seem to interpret no bad news as good news regarding the greenback. Consequently gold lost $15.42 to close at $907.70/oz and is widely expected to test $900.00 level in the near future.

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support: $904.70 (yesterday's low) Resistance: $941.10 (high of 02/07/09)

Support: $895.30 (low of 06/05/09) Resistance: $932.10 (high of 07/07/09)

Support: $889.45 (low of 23/04/09) Resistance: $925.65 (yesterday's high)

Silver Comment 09/07/09

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9 day moving average - $13.354 14 day moving average - $13.562 40 day moving average - $14.367

Silver Report:

The sharp sell off in silver was also a reaction to recent US dollar gains with additional pressure probably coming from reduced demand typical for the summer season. Some analyst also point out that technical momentum accelerated as silver broke below the $13.00 mark. Overall the white metal dropped another 24 cents to settle at $12.830/oz .

The short term trend is bearish, the medium term trend is sideways while the long term trend is bullish.

Support: $12.730 (yesterday's low) Resistance: $13.447 (high of 06/07/09)

Support: $12.675 (low of 24/04/09) Resistance: $13.380 (high of 07/07/09)

Support: $12.550 (low of 14/04/09) Resistance: $13.150 (yesterday's high)