Precious Metals Update

Gold remains overbought and cautious of a sudden fall in the momentum indicator.

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 faces tough barrier 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 pullback to 13.425 Tuesday's low ahead of 13.250 last Friday's low, preceding deeper fall to 13.090.

Over 13.995 triggers bullish breakout over 14.195, Dec 5, 2006 top.