Precious Metals Update

Gold may have exhausted its up-leg extended off 602.20 Jan 5 low and pullback from 672.15 Tuesday's high warn of relapse to former trend-line resistance near 639.25, Jan 24 low.

Depressed by falling momentum indicator, it needs a firm break of 672.15 to offset pressure for extended gains towards 680.00 ahead of 687.80, equality projection target.

Silver is likely to dip below former trend-line resistance off 15.240 May 2006 critical top on pullback from 14.040 Tuesday's high.

While key resistance at 14.195, Dec 2006 top stays intact, unwinding of overbought conditions suggest corrections to support zone near 13.510/13.250, Feb 12/Feb 2 lows.

Over 14.195, however, projects 14.335 and 14.525 levels.