Futures : Metals Update

Gold rallied yesterday to a six month high and looks increasingly strong.

Medium Term, key resistance for the Month is at 676.50 (last July high).

We need to close above this to confirm the uptrend has resumed and potential target at 850.

Short Term Gold looks overstretched and a retracement towards 648/645 level would not break the Bull Trend.

Today’s US Unemployment will be crucial.

Silver continues to outperform Gold and a break of 13.80 would trigger a larger move towards 14.80 and 2006 highs at 15.22.

Short Term we prefer to Sell close to 13.80/14.00 resistance and Target 13.25/40 support.