Gold Comment 13/05/09
9 day moving average - $909.99 14 day moving average - $905.60 40 day moving average - $904.51
We saw gold moving higher yesterday gaining 12.83 dollars to settle at $925.80/oz. A pullback in the US dollar prompted some additional buying in gold with the next upside target at $929.12 last seen on April 2 nd . Some traders noted an increase in open interest in December contract suggesting gold remains a strong play on inflation which is expected to return at some point.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $911.25 (yesterday's low) Resistance: $933.20 (high of 01/04/09)
Support:$895.30 (low of 06/05/09) Resistance: $929.12 (high of 02/04/09)
Support:$884.05 (low of 04/05/09) Resistance: $927.50 (yesterday's high)
Silver Comment 13/05/09
9 day moving average - $13.644 14 day moving average - $13.283 40 day moving average - $12.960
Like gold, silver moved sharply higher on the back of a lower US currency and chart based buying. The move was probably triggered by some stops slightly above the $14.00 level and finished at $14.280/oz with a 38 cents gain. As a cheaper alternative to gold the white metal is also bought as an inflation hedge which added further support to the rally.
The short term trend is sideways while medium and long term trends are bullish.
Support: $13.830 (yesterday's low) Resistance: $14.610 (high of 20/02/09)
Support:$13.670 (low of 11/05/09) Resistance: $14.400 (high of 19/02/09)
Support:$13.590 (low of 23/03/09) Resistance: $14.350 (yesterday's high)