Precious Metals Update

Gold stays firm despite rejection off 640.00 Monday's high.

Holding well on series of higher lows from 627.60, Jan 19 low and 620.40, Jan 17 low, expect a push to trend-line resistance at 642.51 ahead of 645.00, Jan 3 key high, before capping for pullback.

630.00/627.60 will contain dips for now and losing 620.40 sours for deeper setback.

Silver's sustained break of bear trend off 14.195 signals further gains and breach of 12.955/12.965 bodes well for break of 13.120 Monday's high ahead of 13.200 Jan 3 high.

Rising lows from 12.775 and 12.635, Monday/Friday lows will underpin up-leg over 13.200 for 13.381, Fib.618 level, before a pullback emerges.

Beneath 12.635, however, risks a break of former trend-line resistance at 12.576, risking 12.390 and 12.320, Jan 17/12 Jan lows.