Precious Metals Update

Gold is entrenched within the up-leg extended off 602.20 Jan 5 low on the major break of key trend-line resistance off 676.35.

With another upswing in the momentum indicator, expect further gains to 680.00 ahead of 687.80, equality projection target and only a sustained break there exposes key resistance at 694.60.

Meanwhile, 664.10/660.20 should hold and loss of 657.30 warns of deeper setback to 650.00 zone.

Silver clears resistance zone near 13.849, bear trend off 15.240 May 2006 critical top and 13.995, Dec 8 high, which bodes well for eventual up-leg to 14.195, Dec 2006 top.

However, expect some fight near 14.195 and only a sharp move over there projects 14.525 May 15, 2006 high.

Trend-line support near 13.680 Tuesday's low will contain dips and beneath 13.510 Monday's corrective low exposes 13.090 Jan 30 low.