Market Commentary
August gold closed higher due to weakness in the US Dollar on Wednesday. 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 reaction high crossing at 1394.00 is the next upside target. Closes below the 20-day moving average crossing at 1271.70 would confirm that a short-term top has been posted. First resistance is Wednesday’s high crossing at 1348.70. Second resistance is the reaction high crossing at 1394.00. First support is the 20-day moving average crossing at 1271.70. Second support is June’s low crossing at 1179.40.
September silver closed higher on Thursday. The high-range close set the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If September extends the rally off June’s low, the reaction high crossing at 22.525 is the next upside target. Closes below the 20-day moving average crossing at 19.572 would confirm that a short-term top has been posted. First resistance is Tuesday’s high crossing at 20.595. Second resistance is the reaction high crossing at 22.525. First support is the 20-day moving average crossing at 19.572. Second support is the reaction low crossing at 18.670.
Technical levels for 26th July, 20
Metal      Support ($/oz)     Resistance ($/oz)
Gold        1,305.21                 1,350.85
Silver        19.864                    20.587

Source: RSBL