Gold Comment 22/05/09

9 day moving average - $932.47 14 day moving average - $924.45 40 day moving average - $903.83

Gold Report:

Gold moved higher in early trading following the weakness in equity markets which was triggered by a Standard & Poor warning that the UK might lose its AAA rating. However, gold's upside was limited initially by a modest increase in the US dollar but later on the yellow metal has extended its gains as the greenback also declined against major currencies. Thus, gold closed $15.40 higher settling at $952.55/oz and with the US currency under pressure the rally in gold looks set to continue.

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

Support: $935.55 (yesterday's low) Resistance: $967.00 (high of 20/03/09)

Support: $924.75 (low of 20/05/09) Resistance: $962.50 (high of 19/03/09)

Support: $917.30 (low of 19/05/09) Resistance: $956.02 (yesterday's high)

Silver Comment 22/05/09

9 day moving average - $14.153 14 day moving average - $14.007 40 day moving average - $13.061

Silver Report:

Silver started the trading session under pressure from lower equity markets in reaction to renewed concerns on global economy outlook. But eventually the white metal overcame its early weakness and followed gold higher as further decline in the US dollar proved to be enough of a support to push silver into positive territory. As a result silver settled 28 cents up at $14.500/oz and looks set to challenge the high of 2009 at $14.630/oz seen on Feb 23 rd .

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

Support: $14.060 (yesterday's low) Resistance: $14.630 (high of 23/02/09)

Support: $13.730 (low of 19/05/09) Resistance: $14.600 (high of 24/02/09)

Support: $13.615 (low of 18/05/09) Resistance: $14.550 (yesterday's high)