Market Commentary
August gold posted an inside day with a higher close on Thursday. The high-range close sets the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extend the rally off June’s low, the 25% retracement level of the 2012-2013-decline crossing at 1336.40 is the next upside target. Closes below the 20-day moving average crossing at 1258.90 would temper the near-term friendly outlook. First resistance is Wednesday’s high crossing at 1299.70. Second resistance is the 25% retracement level of the 2012-2013-decline crossing at 1336.40. First support is the 20-day moving average crossing at 1258.90. Second support is June’s low crossing at 1179.40.
September silver closed lower on Thursday as it extended yesterday’s key reversal down. The mid-range close set the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. Closes below the reaction low crossing at 18.670 would confirm that a short term top has been posted. If September renews the rally off June’s low, the reaction high crossing at 22.525 is the next upside target. First resistance is last Thursday’s high crossing at 20.250. Second resistance is the reaction high crossing at 22.525. First support is the reaction low crossing at 18.670. Second support is June’s low crossing at 18.185.

Technical levels for 19th July, 2013:
Metal    Support ($/oz) Resistance ($/oz)
Gold      1,272.51            1,297.54
Silver     19.042               19.939

Source: Bullion Bulletin