By Jonathan Barratt

Gold looks to be in tight range; it feels as if it is been torn between those looking for the inflation hedge and continuing CB activity against those expecting it to come under pressure as a result of "risk" coming off the table. This tension seems to have provided a very narrow trading range for the metal. However we do expect a break soon. The key will be on the direction. Technically, at the moment we feel it is working its way into an ascending wedge, which traditionally suggests a break to the topside. Keep an eye on US1690 as this we feel is good resistance and break here should send it higher. We are also keeping a close eye on silver as it is outpacing the gold market at the moment. This has been a trend we have had been following since last December. The Gold-Silver ratio has come in from US55 to US52, which has been supporting our trade.