Gold Comment 14/05/09
9 day moving average - $914.17 14 day moving average - $906.41 40 day moving average - $903.78
Initially gold rose to a 6 week high of $930.60/oz on the back of safe haven buying as equity markets declined. But later on the yellow metal eased on the US dollar gaining ground against the Euro (gold is usually inverse correlated with the US currency ) settling $1.27 down for the day at $924.57/oz. However, some analysts think the rally is in good shape shown on the chart by the short term moving averages crossing above the 40 day moving average and supported by an increase in volume and currency / stocks volatility.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $917.00 (yesterday's low) Resistance: $936.15 (high of 27/03/09)
Support: $911.25 (low of 12/05/09) Resistance: $933.20 (high of 01/04/09)
Support: $895.30 (low of 06/05/09) Resistance: $930.60 (yesterday's high)
Silver Comment 14/05/09
9 day moving average - $13.775 14 day moving average - $13.341 40 day moving average - $12.963
After reaching a new recent high at $14.380/oz last seen on Feb 24 th silver declined sharply yesterday with the pressure coming from higher US dollar and weaker industrial metals, especially copper. Speculation over what accentuated the downward move was a conference in Barcelona for mining executives inviting to caution that global recovery isn't certain yet so demand for metals remains weak. As we mentioned before the white metal is more widely used in industry compared to gold consequently it lost more in percentage terms. Overall silver dropped 35 cents to finish at $13.930/oz.
The short term trend is bullish, the medium trend is sideways and the long term trend is bullish.
Support: $13.870 (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: $14.380 (yesterday's high)