Precious Metals Update

Gold's stays toppish and wary of unwinding of overbought indicators.

Recent fall off 659.80 Friday's high to 643.50 low hints the rally off 602.20 Jan 5 low may have completed its 5-waves up-leg.

Break of 643.50 will confirm pullback to 639.25 Jan 24 low ahead of 633.70 Jan 23 low.

Meanwhile, 659.80/661.30 should cap and only a breach there triggers extension to 676.35, Jul 2006 high.

Silver is facing stiff resistance near 13.849, bear trend off 15.240 May 2006 critical top, ahead of 13.995, Dec 8 high.

Amid overbought conditions, expect 13.849/13.995 to cap for dips below 13.425 Tuesday's low ahead of 13.250 last Friday's low, preceding deeper fall to 13.090.

Break of 13.995, however, triggers bullish breakout over 14.195, Dec 5, 2006 top.

Platinum remains cautious since losing its channel support on a sharp fall from near term top at 1192.0, Feb 1 high.

Weighed down by falling technicals, loss of 1165.5 Tuesday's low risks setback to 20 day MA near Jan 22 low at 1155.0 and 1145.0 Jan 18 low.

Failure to hold there exposes 1133.0 Jan 17 low, before resuming bull leg.

Upside, break of 1192.0 resumes bull leg to 1196.0, Nov 24 high and 1213.4, Fib.382 level.