Precious Metals Update

Gold's retreat from shooting star top at 654.60 Jan 25 high and 648.00 Monday's high was contained at 641.10 Tuesday's low temporarily.
However, toppish indicator hints of a completion of up-leg off 602.20 Jan 5 low and any upside will be tightly capped at 654.60.
Hence, expect an eventual break of 641.10 and 639.25 Jan 24 low, before exposing 633.70 Jan 23 low, which should hold to resume bull leg over Aug 2006 highs at 655.00 and 656.20.

Silver's pullback from 13.425 Monday's high was mitigated swiftly at Tuesday's low at 13.090 and a strong rebound to 13.384 bodes well for bull leg resumption to 13.535 Jan 25 shoot star top.
However, note that momentum remains overbought and a break of 13.535 is likely to meet stiff resistance at 13.692, fib.764 level.
Loss of 13.090 warns of deeper fall to 12.775, Jan 22 low.