Gold Comment 22/06/09

9 day moving average - $937.16 14 day moving average - $945.06 40 day moving average - $936.58

Gold Report:

Gold continued to consolidate closing marginally higher (5 cents) largely on a string of mixed news: crude oil fell which tends to hurt gold but the US dollar also fell which usually supports the yellow metal. In addition some analysts pointed that safe heaven flows into gold have come to a standstill with ETFs holding also not moving anywhere. So the seasonally soft period for gold could potentially bring lower corrections even though inflation remains supportive for the long term.

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

Support: $931.90 (Friday'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: $939.10 (Friday's high)

Silver Comment 22/06/09

9 day moving average - $14.382 14 day moving average - $14.712 40 day moving average - $14.362

Silver Report:

Silver eased slightly losing 2 cents in a move that showed rather a consolidation with gold. Silver, dubbed gold's ‘little sister' has a much smaller market, is more volatile and less liquid than gold so when it makes a move tends to move better than the yellow metal regardless of direction. However at the moment, in the absence of any serious catalyst silver is range bound seeking guidance from gold.

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

Support: $14.120 (Friday'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: $14.380 (Friday's high)