Market Commentary
October gold closed higher on Tuesday and the high-range close sets the stage for a steady to higher opening when Wednesday’s night session begins trading. Stochastics and the RSI are overbought but are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1361.90 would confirm that a short-term top has been posted. If October renews the rally off June’s low, May’s high crossing at 1489.00 is the next upside target. First resistance is last 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 1396.10. Second resistance is  the 20-day moving average crossing at 1361.90.
September silver posted a key reversal up on Tuesday ending a three-day correction off last week’s high. The high-range close set the stage for a steady to higher opening when Wednesday’s night session begins trading. Stochastics and the RSI have turned bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 22.565 are needed to confirm that a short-term top has been posted. If September renews the rally off June’s low, the 50% retracement level of the September-June decline crossing at 26.727 is the next upside target. First resistance is last 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 23.100. Second support is the 20-day moving average crossing at 22.561.
Technical levels for 4th Sep, 2013:
Metal   Support ($/oz)     Resistance ($/oz)
Gold      1,393.92                    1,423.60
Silver       23.976                      24.511
Source: RSBL