Market Watch:-

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Bloomberg Gold opened at 990.50/991.50 in New York. Employment data

landed near expectation and had little impact on the metal. It traded

erratically within a range, slipping to an intraday low of 985.00/986.00.

Equity markets later turned positive, the dollar lost ground and gold

rallied. It remained well bid, peaking at 996.75/997.75. From here it

retreated from the highs as the trading day unwound, settling at

995.00/996.00.

Silver opened at 1606.00/1609.00 and climbed ahead of the economic

data, finding resistance near 1615.00. It pulled back and

traded lightly within a range as investors digested the employment

data. Profit taking later dragged the metal to a low of

1583.00/1586.00. This move quickly reversed on the back of stronger

equity markets and a weaker dollar. Silver climbed to a high of

1635.00/1638.00 before coming off and finally closing at

1626.00/1629.00.

Technical Commentary:-

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Bloomberg Gold on the weekly chart is showing a consolidation triangle breakout

to the topside at current 991. The weekly close above resistance lines

at 965 and 976 bodes well for further gains up to the 2009 high of

1006 and possibly to the 2008 high of 1032. We suspect the market

will look to buy Bloomberg Gold on any dip to 976 with stop losses back below

965.

Silver on the weekly chart is showing a strong move to the topside at

current 16.16. The unit touched a fresh 2009 high this week of 16.31.

Our next resistance is the 16.45 area which represents the 61.8%

Fibonacci retracement of the 21.35 to 8.54 down move. A move

above 16.45 would opens up the 76.4% retracement level of 18.32.

The Bloomberg Gold Silver ratio moved lower to a fresh 2009 low of 61.35. This

area represents the 61.8% Fibo retracement of the 47.52 to 83.90 up

move. A clean break lower opens up 76.4% level of 56.11.