Precious Metals Update

Gold is holding well above former trend-line resistance near 641.29 Wednesday's low and likely to extend gains on the back of strong bounce off 633.70 Tuesday's low.
Rising momentum indicator suggest further upside towards 650.20 ahead of Aug 2006 resistance zone at 655.00 and 656.20, before capping.
Downside, loss of 633.70 risks 627.60, Jan 19 low and 620.40, Jan 17 low instead.

Silver retains its bullish bias on break of bear trend off 14.195 and former resistances at 12.955/12.965 underpin further advance.
Buoyed by series of rising lows from 12.775 and 12.635, expect next break of 13.381, Fib.618 level, ahead of 13.455, Dec 7 former low before a possible pullback.
Under 12.965/955, however, risks basing at 12.576 trend-line support.