Market Commentary
October gold closed sharply higher on Friday as it extended the rally off June’s low. 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 diverging but remain bullish signaling that sideways to higher prices are possible near-term. If October extends the aforementioned rally, June’s high crossing at 1424.00 is the next upside target. Closes below the 10-day moving average crossing at 1321.60 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 1379.10. Second resistance is June’s high crossing at 1424.00. First support is the 10-day moving average crossing at 1321.60. Second resistance is last Wednesday’s low crossing at 1272.10.
September silver closed higher on Friday as it extends the rally off June’s low. 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 bullish signaling that sideways to higher prices are possible near-term. If September extends the rally off June’s low, the 38% retracement level of the September-June decline crossing at 24.704 is the next upside target. Closes below the 20-day moving average crossing at 20.471 are needed to confirm that a short-term top has been posted. First resistance is today’s high crossing at 23.400. Second resistance is the 38% retracement level of the September-June decline crossing at 24.704. First support is the 20-day moving average crossing at 20.471. Second support is the reaction low crossing at 19.100.
Technical levels for 19thAug, 2013:
Metal     Support ($/oz)    Resistance ($/oz)
Gold            1,361.52            1,384.58
Silver         22.842                  23.790

Source: RSBL