Market Commentary
October gold closed sharply lower on Thursday extending the decline off August’s high. The low-range close sets the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If October extends this week’s decline, August’s low crossing at 1272.10 is the next downside target. Closes above the 20-day moving average crossing at 1382.20 would temper the near-term bearish outlook. First resistance is the 20-day moving average crossing at 1382.20. Second resistance is August’s high crossing at 1432.90. First support is today’s low crossing at 1322.40. Second resistance is August’s low crossing at 1272.10.
December silver closed sharply lower on Thursday renewing the decline off August’s high. The low-range close set the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If December extends the aforementioned decline, August’s low crossing at 19.145 is the next downside target. Closes above the 20-day moving average crossing at 23.512 would temper the near-term bearish outlook. First resistance is August’s high crossing at 25.160. Second resistance is the 50% retracement level of the September-June decline crossing at 26.862. First support is today’s low crossing at 21.890. Second support is the reaction low crossing at 19.145.
Technical levels for 13th Sep, 2013:
Metal   Support ($/oz) Resistance ($/oz)
Gold     1,308.86           1,353.40
Silver    21.429               22.778
Source:RSBL