Market Commentary
October gold closed lower on Monday as the U.S. economy continues to improve. The Federal Reserve’s surprise decision to hold stimulus for now will help prices only in the short term. However, gold could drop below $1,250 an ounce before the end of the year as economic data strengthens and investors expect the Fed to start reducing its asset purchases. Today’s high-range close sets the stage for a steady to higher opening when Tuesday’s night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 1365.80 are needed to confirm that a short-term low has been posted. If October renews the decline off August’s high, August’s low crossing at 1272.10 is the next downside target. First resistance is the 20-day moving average crossing at 1365.80. Second resistance is August’s high crossing at 1432.90. First support is last Wednesday’s low crossing at 1281.80. Second resistance is August’s low crossing at 1272.10.
December silver closed lower on Monday as it extended last Friday’s decline. A short covering rally tempered early session losses and the high-range close set the stage for a steady to higher opening when Tuesday’s night session begins trading. Stochastics and the RSI have turned bullish signaling that a low might be in or is near. Multiple closes above the 20-day moving average crossing at 23.095 are needed to confirm that a low has been posted. If December renews the decline off August’s high, August’s low crossing at 19.145 is the next downside target. First resistance is the 20-day moving average crossing at 23.095. Second resistance is August’s high crossing at 25.160. First support is last Wednesday’s low crossing at 21.225. Second support is the 62% retracement level of the June-August rally crossing at 20.867.
Technical levels for 24th Sep, 2013
Metal Support ($/oz) Resistance ($/oz)
Gold 1,303.52 1,354.79
Silver 20.894 22.737
Source:RSBL