Precious Metals Update

Gold charged higher on rebound from 620.40 Wednesday's low and cleared 630.75, Jan 4 high, before touching 633.83.

Beware of former trend-line support at 634.90 and only a break there exposes 641.25, bear trend-line resistance and 645.00, Jan 3 key resistance.

Dips should hold above 620.40 to keep the up-leg intact and only a loss of last Friday's low at 610.00 dampens.

Silver was rejected at 12.965, Jan 12 high but managed to spike higher off 12.390, Wednesday's low, shielding breakout point at 12.320.

While rising lows and positive momentum signal upside potential, it needs a break of 12.965 to confirm further strength towards 13.200, Jan 3 high, ahead of 13.381, Fib.618 level.

Hourly support at 12.500 and only a relapse 12.390 sours tone.