Precious Metals FUTURES Update : Buy at Dips

Precious metals continue to move upwards, with little sign slowing momentum.

The market found support yesterday on dollar weakness, expect this theme to continue.

There was some short liquidation in the Gold markets yesterday as there were some rumors of several mining firms lifting their hedges.

However, it was Bernanke's testimony weighing on the dollar that has provided most support to the Gold and Silver market, after losing some ground in early trading.

We expect the strength to continue in the Gold market, with the April contract setting up for a target at 693.90 in the short term. It appears that all eyes are looking at the "magical" 700.00 level, however, we do not see this as hugely significant in the grand scheme of things and would choose to close any longs lower at 693.90.

Any setbacks towards 667.20 is a good opportunity for fresh longs.