Precious Metals Update

Gold bulls stay cautious as the momentum indicators continue to point down, despite Wednesday's rebound.

Resistance bounded by 689.00 high and 673.00 former low will cap and risks fall to 656.40 Feb 21 low.

A loss there exposes 648.00 ahead of 641.10, which should hold for bull leg resumption off 602.20 Jan 5 low.

A swift break of 685.00 instead triggers upswing to 692.27, projection target and 694.60 high.

Silver is likely to consolidate further on pullback off Tuesday's high at 14.710, delaying the longer term bull trend for now.

Corrective dips may be extended to 13.690, Feb 20 low which is near former trend-line resistance off 15.240 May 2006 top.

Expect consolidation there before bull leg resumes.

Sustained break of 14.410 Wednesday's high, however, will resume strength over 14.710 and 14.748 key resistance level.