Gold Market Commentary For Monday Evening

Gold closed lower on Monday as it extends last Friday's decline. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 1097.30 would open the door for a larger degree decline into the last half of March. Closes above the 20 day moving average crossing at 1117.30 would temper the near term bearish outlook. First resistance is the 20 day moving average crossing at 1117.30. Second resistance is last Wednesday's high crossing at 1133.90. First support is the reaction low crossing at 1097.30. Second support is today's low crossing at 1092.10.

Silver closed lower due to profit taking on Monday and below the 20 day moving average crossing at 16.958 signaling that a short term top is in or is near. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are diverging and have turned bearish signaling that sideways to lower prices are possible near term. If May extends today's decline, the reaction low crossing at 16.330 is the next downside target. Closes above the 10 day moving average crossing at 17.194 would temper the near term bearish outlook. First resistance is the 10 day moving average crossing at 17.194. Second resistance is the reaction high crossing at 17.600. First support is today's low crossing at 16.620. Second support is the reaction low crossing at 16.330.

The U.S. Dollar closed lower due to profit taking on Monday but remains above the 20 day moving average crossing at 80.70. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term. If June extends last week's rally, February's high crossing at 81.70 is the next upside target. If June renews this month's decline, the 38% retracement level of the November-February rally crossing at 79.17 is the next downside target. First resistance is today's high crossing at 81.35. Second resistance is February's high crossing at 81.70. First support is the 20 day moving average crossing at 80.70. Second support is the 10 day moving average crossing at 80.49.


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