Precious Metals Update

Gold's shooting star top off 654.60 Jan 25 high hints completion of up-leg off 602.20 Jan 5 low.

Despite bounce from Jan 26 low at 641.10, toppish momentum warn of near term top in place and risks losses beneath 641.10 and 639.25 Jan 24 low ahead of 633.70 Jan 23 low.

Loss of 626.93 Jan 18 low, however, negates potential bull leg over Aug 2006 resistances at 655.00 and 656.20 for 659.65, Jul 14, 2006 low.

Silver is cautious of the 13.535 Jan 25 shoot star top ahead of 13.692 Fib.764 level.

Momentum indicator is at overbought zone and may unwind for corrective pullback to former resistance zone at 12.955/12.965 ahead of 12.880 Jan 23 low, which should hold.

Rebound from there will resume bull trend on rising lows formation for further gains towards 13.845 and 13.995, Dec 2006 resistance zone.