Precious Metals Update

Gold bounced back strongly off 656.40 Wednesday's low and is likely to extend the up-leg off 602.20 Jan 5 low beyond 682.49 Thursday high.

Expect a break there for further gains to 688.60 May 19, 2006 high and 692.27, projection target, preceding 694.60 high.

Immediate supports are located at 673.50 former high and 664.00 rising trend-line. Beneath 656.40, however, risks 645.

Silver recovers swiftly above the trend-line resistance off 15.240 May 2006 critical top and was followed by ascend to 14.340 Wednesday's high.

Former resistance at 14.195, Dec 2006 top turns support and look to underpin further gains to 14.525 May 15, 2006 high ahead of 15.080, May 12, 2006 high.

Under 13.710 Wednesday's low offsets current bullish structure.