Precious Metals Update

Gold continues to reverse sharply from the key bear trend extended off 676.35, Jul 17 top.

Fall from 645.00, Jan 3 high and 626.30, last Friday high ignited fresh round of losses which breached key 612.17, Dec 18 low.

Expect further dips towards 598.50 and 594.54, Oct 31 low and fib.618 of 560.13 to 650.20.

Barriers are located at 612.17 and 618.20.

Only a break of 626.30 negates bearish pressure.

Silver pullback from Wednesday's bearish engulfing high at 13.200 accelerates past 12.315, Dec 18 key support.

Failure to hold there bodes ill for deeper down-leg to 11.965, Oct 31 low and 11.899, fib.618 of 10.480 to 14.195 advance, preceding a test on 11.695, Oct 25 low.

Former supports at 12.315/12.415 will cap and only a break of 12.750, Friday's high offsets negative tone.