Market Commentary
Ø  August gold posted an upside reversal on Friday as it consolidated some of this year’s decline. 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 oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If August extends this year’s decline, monthly support crossing at 1155.60 is the next downside target. Closes above the 20-day moving average crossing at 1342.50 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 1292.40. Second resistance is the 20-day moving average crossing at 1342.50. First support is today’s low crossing at 1179.40. Second support is monthly support crossing at 1155.60.
Ø  July silver closed higher due to short covering on Friday as it consolidated some of this year’s decline. 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 oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If July extends this year’s decline,
monthly support crossing at 17.080 is the next downside target. Closes above the 20-day moving average crossing at 21.069 are needed to confirm that a low has been posted. First resistance is the 10-day moving average crossing at 20.043. Second resistance is the 20-day moving average crossing at 21.069. First support is today’s low crossing at 18.185. Second support is monthly support crossing at 17.080.

Technical levels for 1^st July,2013

Source: www.rsbl.co.in