Market Commentary
February gold closed higher on Friday as it extends this week’s short covering rally. The high-range close sets the stage for a steady to higher opening when Monday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Today’s close above the 20-day moving average crossing at 1223.60 confirms that a low has been posted. If February extends this week’s rally, December’s high crossing at 1267.50 is the next upside target. If February renews the decline off August’s high, weekly support crossing at 1179.40 is the next downside target. First resistance is today’s high crossing at 1239.60. Second resistance is December’s high crossing at 1267.50. First support is Tuesday’s low crossing at 1181.40. Second support is weekly support crossing at 1179.40.
March silver closed higher on Friday as it extends December’s trading range. The high-range close set the stage for a steady to higher opening when Monday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above December’s high crossing at 20.480 are needed to confirm an upside breakout of December’s trading range. If March renews the decline off October’s high, June’s low crossing at 18.600 is the next downside target. First resistance is December’s high crossing at 20.480. Second resistance is the reaction high crossing at 20.920. First support is Tuesday’s low crossing at 18.720. Second support is June’s low crossing at 18.600.
Source:RSBL