Precious Metals Update

Gold continues to retain bearish bias on reversal from 645.00, Jan 3 high and 626.30, Jan 5 high.

While rebound is capped at 612.17/615.51, Dec 18 and 19 former lows, expect further dips towards 598.50 and 594.54, Oct 31 low and fib.618 of 560.13 to 650.20.

Only a break of 626.30 negates bearish pressure.

Silver remains entrenched within the downtrend extended from Jan 3 bearish engulfing high at 13.200.

Falling momentum indicators suggest another down-leg before any meaningful corrective recovery emerge.

Therefore, expect rebound from 12.064 to repel off 12.550 congestion for pullback below 12.064 ahead of supports at 11.965 and 11.899, Oct 31 low and fib.618 level, respectively.

Failure to hold there bodes ill for 11.695, Oct 25 low.