METALS FUTURES UPDATE

METALS FUTURES UPDATE

Gold and Silver found bullish momentum on the back of Bernanke’s testimony. Initial pressure for gold came from a technical sell off through support from Tuesday’s weakness, fund selling, worries over Bernanke’s testimony.

The Gold market rebounded from the 618.00 - 619.00 major support level. The rally was further fueled when Bernanke made dovish comments regarding inflation and future interest rate decisions. The end of the interest rate cycle should be bullish for precious metals, as it "indicates the potential for inflation to grow".

Gold posted gains of $11.70. We are yet to see evidence of a full reversal, however, a move towards 634.50 leaves short term traders with good support for fresh longs.

However we did see a Reverse towards 637 level.