Precious Metals Update

Gold advances strongly off 641.10, Tuesday's low and poised to clear shooting star top at 654.60, Jan 25 high.

Amid risks of toppish indicator, a firm clearance of Aug 2006 highs at 655.00/656.20 is essential to avert potential pullback.

Beyond there will accelerate to 676.35, Jul 2006 top. Losing 642.50, Wednesday's low confirms unwinding of the indicator for further break of 639.25, Jan 24 low, before exposing 633.70, Jan 23 low.

Silver is edging higher off 13.090, Tuesday's low and break of 13.535, Jan 25 shoot star top bodes well for extension beyond 13.650 and 13.692, Wednesday's high/Fib.764 level.

However, note that momentum remains overbought and a break of 13.692 is likely to meet tough barrier at 13.845, Dec 15, 2006 high.

Under 13.300, trend-line support warns of deeper fall to 13.090, Tuesday's low and 12.775, Jan 22 low.