Precious Metals Update - Gold resumes Bull leg

Gold extended its rebound from 612.17, Dec 18 hammer low as it cleared the trend-line resistance drawn off 638.10, Dec 8 high.

Current pullback just below the 20 day MA near 629.48, Tuesday's high should be corrective and likely to hold above 618.20, Dec 21 low.

Hence, expect recovery over 629.48 which will confirm further strength to 638.10 ahead of 641.10, Dec 6 high before testing the key trend-line resistance at 645.40.

Under 612.17 resumes bear leg towards 605.17, fib.50 level instead.

Silver has built a strong base at 12.315/12.356, Dec 18 and Dec 19 lows, for firmer recovery towards 13.006, Dec 18 high.

Beyond there exposes 13.255, 50% retracement of 14.195 to 12.315 decline, before capping for corrective dips. Relapse of 12.356, however, ignites deeper setback towards 11.965, Oct 31 low and 11.899, 61.8% retracement of 10.480 to 14.195 upmove.

Platinum poised to extend gains on further clearance of 1130.0, Tuesday high, hence averting bear trend to 1096.5, Dec 7 low.

Sustained break of 1130.0 will offset bearish pressure and confirms a double bottom reversal to 1164.0, Dec 5 high and 1168.7, 23.6% retracement of 1402.5-1096.5 fall.