Market Commentary
October gold closed lower on Thursday while extending the trading range of the past eight days. The low-range close sets the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI are bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1292.70 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 last Wednesday’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 1292.70. Second support is July’s low crossing at 1208.50.
September silver closed higher on Thursday. The low-range close set the stage for a steady to lower opening when Friday’s night session begins trading. Stochastics and the RSI are bearish signaling that a short-term top might be in or is near. Today’s close below the 20-day moving average crossing at 19.668 confirms 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 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 2nd Aug, 2013:
Metal Support ($/oz) Resistance ($/oz)
Gold 1,275.04 1,330.54
Silver 19.205 20.000
Source: Bullion India