Gold Comment 03/06/09

9 day moving average - $965.79 14 day moving average - $954.08 40 day moving average - $917.44

Gold Report:

Gold bounced back from an early profit taking decline to close $6.90 higher at $982.60/oz largely on the back of more US dollar weakness. Comments by Treasury Secretary Timothy Geithner in China saying the US administration remains committed to a strong dollar failed to impress the markets and the greenback continued its nosedive. So the expected dollar strength didn't materialise which in turn was encouraging news for gold. But on the other hand, the failed rally attempts could signal the need for a breather.

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

Support: $968.80 (yesterday's low) Resistance: $1000.00 (psychological level)

Support: $958.35 (low of 29/05/09) Resistance: $995.65 (high of 24/02/09)

Support: $944.00 (low of 28/05/09) Resistance: $986.42 (yesterday's high)

Silver Comment 03/06/09

9 day moving average - $15.229 14 day moving average - $14.839 40 day moving average - $13.592

Silver Report:

Silver settled higher with gold in response to a weaker US dollar which despite expectations was not lifted by Timothy Geithner's comments. The white metal breached $16.00/oz level for the first time since August 2008 but backed down to finish at $15.950/oz gaining 40 cents. The chart shows an ‘Outside Day' pattern with higher high / lower low and until silver holds convincingly above $16.00 mark some consolidation is expected in the short term.

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

Support: $15.440 (yesterday's low) Resistance: $16.390 (low of 06/08/09)

Support: $15.130 (low of 29/05/09) Resistance: $16.210 (high of 08/08/09)

Support: $14.620 (low of 28/05/09) Resistance: $16.003 (yesterday's high)