Daily Bullion Market Report

Market Commentary
October gold closed lower on Friday. A short covering rally tempered early session losses and 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 bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1297.40 would confirm that a short-term top has been posted. If October renews the rally off June’s low, the reaction high crossing at 1395.20 is the next upside target. First resistance is October’s high crossing at 1348.00. Second resistance is the reaction high crossing at 1395.20. First support is the 20-day moving average crossing at 1297.40. Second support is July’s low crossing at 1208.50.
September silver closed higher on Friday as it extends the trading range of the past six weeks. The mid-range close set the stage for a steady opening when Monday’s night session begins trading. Stochastics and the RSI are neutral to bearish signaling that a short-term top might be in or is near. If September renews the rally off June’s low, the reaction high crossing at 22.525 is the next upside target. Closes below the reaction low crossing at 18.670 are needed to confirm that a short-term top has been posted. First resistance is last Tuesday’s high crossing at 20.595. Second resistance is the reaction high crossing at 22.525. First support is the reaction low crossing at 19.215. Second support is the reaction low crossing at 18.670.
Technical levels for 5thAug, 2013:

Metal        Support ($/oz)     Resistance ($/oz)
Gold           1,285.51                  1,330.21
Silver         19.292                      20.334

Source: RSBL

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