Gold and Silver

Gold and Silver could be for a bit of metal fatigue short term after printing new highs yesterday on USD weakness. We believe Gold and Silver prices are rich compare to the USD which is comparatively at the same level as November last year. The odds for a correction are increasing and we are looking for a retracement towards 897 for Gold February (gcg8/zig8) and 16.00 and 15.50 for Silver March(zih8/sih8).

A five-month strike at Grupo Mexico’s Cananea copper mine ended on 11 January after a Mexicanfederal labour court ruled the action was illegal because strikers did not follow proper process in initiating the walk-out. The company has since reported that most employees had turned up forweekend shifts as normal, but warned normal production levels at the pit will not be reached for aroundthree months. It is estimated the strike has lost the company about 80Kt of copper output.

Note: the support/resistance levels used in the matrix’s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
GOLD SILVER
ZGG8 ZIG8
Resist. Resist.
921.3 16.471
915.2 16.471
912.6 16.471
906.1 16.471
906.5 16.471
903 16.471
896.9 16.471
Support Support
47dMA 31dMA
826.6 14.777
9dMA 9dMA
881.4 15.641

thanks to saxo bank

MCXARUN
9994500540