Market Commentary

October gold closed lower due to profit taking on Friday as it consolidated some of the rally off June’s low. The low-range close sets thestage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are overbought but are turningneutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1356.30 wouldconfirm that a short-term top has been posted. If October renews the aforementioned rally, May’s high crossing at 1489.00 is the nextupside target. First resistance is Wednesday’s high crossing at 1432.90. Second resistance is May’s high crossing at 1489.00. First support is the 10-day moving average crossing at 1391.30. Second resistance is the 20-day moving average crossing at 1356.30.

September silver closed lower on Friday and below the 10-day moving average hinting that a short-term top might be in or is near. The low-range close set the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI areoverbought but are turning neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day movingaverage crossing at 22.332 are needed to confirm that a short-term top has been posted. If September renews the rally off June’s low, the50% retracement level of the September-June decline crossing at 26.727 is the next upside target. First resistance is Wednesday’s high crossing at 25.120. Second resistance is the 50% retracement level of the September-June decline crossing at 26.727. First support is today’s low crossing at 23.385. Second support is the 20-day moving average crossing at 22.331.

Technical levels for 3rd Sep, 2013:
Metal    Support ($/oz) Resistance ($/oz)
Gold      1,388.71               1,401.21
Silver     23.420                  24.528
Source: RSBL