Precious Metals Update

Gold staged a strong bounce off 633.70 Tuesday's low and surged above key trend-line resistance off 650.20 Dec 1 doji top.

With support zone located near 641.61/637.09, rising momentum indicator suggest further upside towards 650.20 ahead of key resistance zone at 655.00 and 656.20, before capping.

Downside, loss of 633.70 dampens and triggers pullback to 627.60, Jan 19 low and 620.40, Jan 17 low instead.

Silver's continues to surge high on break of bear trend off 14.195 and breach of 12.955/12.965 underpins a clearance of 13.200 Jan 3 high.

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.