Market Commentary
October gold closed higher due to short covering on Wednesday as it consolidated some of the setback off last week’s high. The highrange close sets the stage for a steady to higher opening when Thursday’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 the 20-day moving average crossing at 1357.60 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 1357.60. 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 higher on Wednesday. The high-range close set the stage for a steady to higher opening when Thursday’s night
session begins trading. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near-term. If
December renews the decline off August’s high, August’s low crossing at 19.145 is the next downside target. Multiple closes above the 20-day moving average crossing at 22.834 are needed to confirm that a low has been posted. First resistance is the 20-day moving average crossing at 22.834. 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 26th Sep, 2013:
Metal  Support ($/oz)  Resistance ($/oz)
Gold       1,319.57                 1,341.43
Silver    21.524                      22.017
Source:RSBL