Market Commentary
October gold posted an inside day with lower close on Tuesday. The low-range close sets the stage for a steady to lower opening when Wednesday’s night session begins trading. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible nearterm. If October extends Monday’s rally, July’s high crossing at 1348.00 is the next upside target. Closes below last Wednesday’s low crossing at 1272.10 would confirm that a short-term top has been posted. First resistance is Monday’s high crossing at 1343.60. Second resistance is July’s high crossing at 1348.00. First support is last Wednesday’s low crossing at 1272.10. Second support is July’s low crossing at 1208.50.
September silver closed slightly higher on Tuesday extending the rally off June’s low. The mid-range close set the stage for a steady to higher opening when Wednesday’s night session begins trading.Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If September extends the rally off June’s low, the 25% retracement level of the September-June decline crossing at 22.486 is the next upside target. Closes below the reaction low crossing at 19.600 are needed to confirm that a short-term top has been posted. First resistance is today’s high crossing at 21.750. Second resistance is the 25% retracement level of the September-June decline crossing at 22.486. First support is the 20-day moving average crossing at 19.990. Second support is the reaction low crossing at 19.100.

Technical levels for 14thAug, 2013:
Metal   Support ($/oz)   Resistance ($/oz)
Gold      1,313.65             1,336.59
Silver     21.152                  21.768

Source: RSBL