Gold and Silver Commentary

9 day moving average - $941.80 14 day moving average - $950.75 40 day moving average - $934.79

Gold Report:

We saw an ‘Inside Day' pattern in gold with the high and low engulfed by the previous day ones which confirmed the consolidation range of the last few sessions probably waiting for the next trigger. The seasonally slow summer period has not seen strong demand but some buying interest does seem to emerge on dips. Yesterday's decline of $7.62 confirmed gold's correction from early June highs with traders closely monitoring the potential effect on gold from a seasonal sell off in equity markets.

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

Support: $929.74 (yesterday's low) Resistance: $961.87 (high of 11/06/09)

Support: $919.95 (low of 14/05/09) Resistance: $956.02 (high of 21/05/09)

Support: $914.93 (low of 18/05/09) Resistance: $941.50 (yesterday's high)

Silver Comment 19/06/09

9 day moving average - $14.638 14 day moving average - $14.941 40 day moving average - $14.292

Silver Report:

Following gold, silver moved down on the back of the US dollar in a move that also pointed to consolidation. The last few days showed narrower than usual ranges as if market participants are waiting for the next catalyst. Technically, silver lost 13 cents to settle at $14.23o /oz toying again with the 40 day moving average.

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

Support: $14.125 (yesterday's low) Resistance: $14.830 (high of 22/05/09)

Support: $13.930 (low of 17/06/09) Resistance: $14.550 (high of 21/05/09)

Support: $13.830 (low of 12/05/09) Resistance: $14.400 (yesterday's high)