Precious Metals Update

Gold advances strongly off 641.10, Tuesday's low and clears 654.60, Jan 25 high.
Amid risks of toppish indicator, clearance of Aug 2006 highs at 655.00/656.20 has delayed potential pullback.

Breach of 661.30 Thursday's high will accelerate gains to 676.35, Jul 2006 top.

652.20 and 642.50, Thursday/Wednesday lows, should hold and only a break there confirms unwinding of the indicator for losses to 633.70, Jan 23 low.

Silver continues to edge higher off 13.090, Tuesday's low and pierced through 13.692, Fib.764 level to 13.780 Thursday's high.

While the momentum stays overbought, break of tough barrier at 13.845, Dec 15, 2006 high will confirm strength to 14.195, Dec 5, 2006 key top.

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