Daily Gold and Silver Market and Technical Commentry.

Daily Gold and Silver Market Commentary:-

As On Wednesday 13-08-2009

Gold opened at 945.00/946.00 and retreated as the session started, dipping to

942.00/943.00. Rallying equity markets and stronger oil helped the metal recover,

finding resistance near 950.00 and it traded lightly within a narrow range. However

the metal became well bid, and quickly push through 950, peaking at

952.00/953.00. The market later went very quiet in front of the FOMC rate decision,

finally settling at 949.75/950.75. As expected the rate was left unchanged

and gold tumbled, finding support near 945.00.

Silver opened at 1428.00/1431.00 in New York. Light selling dragged the metal

lower, slipping to 1424.00/1427.00. This move later reversed as silver climbed on

the back of rallying copper and oil. The metal remained well bid during the tail end

of the session, quickly climbing to an intraday high of 1460.00/1463.00 and finally

settling at 1458.00/1461.00. Like gold, silver also lost ground upon the release of

the FOMC rate decision, finding support near 1445.00.

Daily Gold and Silver Technical Commentary:-

Gold 50-day once again coming to the rescue in support of the metal, though we

did end up trading marginally higher on the day. Even so, the market's indecision

provides us with more warning as another "outside day" has been recorded on the

daily candlesticks. The gold 38.2% Fibonacci generally continues to hold off of the

primary base from the April lows. Additionally, despite the fact that gold has traded

very weightily over the past week, the metal is still holding near the middle of the

one-month bull channel, with the bottom end of the channel coming in near

$930.50 today, providing further support should gold collapse through the 50-day.

Silver price action today was fairly bullish, as the metal traded and closed

through yesterday's high after touching a new six session low. The overall uptrend

remains in tact and our outlook continues to be cautiously bullish. Support comes

in at today's low of Silver 14.24 followed by the 21-day moving average of 13.95; while

resistance comes in at the August 6th high of 15.05.