Precious Metals Update

Gold was rejected below the tough resistance zone between 616.10 and 620.00, Thursday's high and congestion.

The latest retreat bodes ill and signals bear leg extension off 645.00, Jan 3 and 626.30, Jan 5 highs.

Hence, expect an eventual clearance of 606.25 and 604.17, Tuesday and Monday lows.

Beneath there violates 602.20, Jan 5 low, preceding a drop to 594.54, Fib.618 of 560.13 to 650.20.

Beyond 620.0 needed to confirm fresh strength.

Silver's close on Thursday as a shooting star top off 12.535 warns of down-leg continuation.

Weighed by the falling moving averages, down-leg from Jan 3 bearish engulfing high at 13.200 is likely to unlock 12.215 Wednesday's low, before breaking 12.064, Monday's low for 11.965 and 11.899, Oct 31 low and fib.618 level.

Failure to hold there risks 11.695, Oct 25 low.