Gold Comment 12/05/09

9 day moving average - $904.17 14 day moving average - $903.20 40 day moving average - $904.44

Gold Report:

Gold stopped for a breather yesterday as the intraday high and low were within Friday's trading range. Pressure came from a higher US dollar against the Euro but the yellow metal found support from declines in the stock markets with lower crude oil prices also seen as having a bearish influence. As a result gold finished the day 3.05 dollars lower settling at $913.00/oz. The moving averages looks set to converge which technically could suggest more sideways movements.

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

Support: $908.20 (yesterday's low) Resistance: $933.20 (high of 01/04/09)

Support: $895.30 (low of 06/05/09) Resistance: $929.12 (high of 02/04/09)

Support: $884.05 (low of 04/05/09) Resistance: $917.70 (yesterday's high)

Silver Comment 12/05/09

9 day moving average - $13.391 14 day moving average - $13.149 40 day moving average - $12.916

Silver Report:

After an impressive 6 days rally, yesterday' decline in silver was somewhat expected and was largely driven by the strength in the US dollar. But towards the finishing line the white metal got support from lower equity markets and managed to recoup some of the initial losses. The chart shows another failed attempt to convincingly break and hold above the $14.00 level resulting in a 9 cents loss for the day closing at $13.890/oz.

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

Support: $13.670 (yesterday's low) Resistance: $14.610 (high of 20/02/09)

Support: $13.590 (low of 23/03/09) Resistance: $14.400 (high of 19/02/09)

Support: $13.410 (low of 20/03/09) Resistance: $14.050 (yesterday's high)