Precious Metals Update

Gold poised to extend fall from 645.00, Jan 3 high and 626.30, Jan 5 high.

Negative signals from the bear cross of the moving averages and falling momentum indicator are also suggesting further downside ahead.

While barriers at 615.76 and 620.00, Tuesday's high and congestion, stay intact, expect dips to 606.25 and 604.17, Tuesday and Monday lows.

Beneath there unlocks 602.20, Jan 5 low ahead of 594.54, Fib.618 of 560.13 to 650.20.

Beyond 626.30 needed to offset bearish pressure.

Silver entrenched within the down-leg from Jan 3 bearish engulfing high at 13.200.

Negative tone intact and remains vulnerable for another drop before corrective recovery emerges.

Hence, expect bounce off 12.064, Monday's low to repel off 12.550 congestion for pullback to 12.064 ahead of 11.965 and 11.899, Oct 31 low and fib.618 level.

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