Precious Metals Update

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

While the momentum indicator continues to point higher, expect 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 key trend-line resistance off 15.240 May 2006 critical top which bodes well for an eventual test on 14.195, Dec 2006 top.

Amid overbought conditions, however, expect tough fight at 14.195 and only a sharp move over there projects 14.335 and 14.525 levels.

Trend-line support near 13.680 Tuesday's low should hold and only a loss of 13.510 Monday's corrective low risks deeper fall ahead.