PRECIOUS METALS FLASH

Gold continued to squeeze out shorts yesterday and traded to a high of 1584.20, as the general risk mood improved, after Greek polls showed that sentiment was shifting towards pro-austerity parties. Spanish debt worries on the other hand capped finally the market, when the government announced to bail out Bankia SA with the impressive sum of 19 Billion Euros, rising concerns that further large funds would have to be put up for the banking sector. Interesting to note is that the risk in the Eurozone seems to affect less other areas of the globe lately, which could bode well for commodities too. 1600 USD seems on the cards for Gold as the next major target to break, where further buy stops are expected to kick in. Support is expected at the 1570 level and only a move below 1550 should attract the focus of the bears again.