Gold Market Commentary For Tuesday Evening

Gold closed higher due to short covering on Tuesday as it consolidated some of Monday's decline. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are 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 Monday's low crossing at 1092.10.

Silver closed higher due to short covering on Tuesday as it consolidated some of the decline off last week's high. The mid range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If May extends Monday's decline, the reaction low crossing at 16.330 is the next downside target. Closes above the 10 day moving average crossing at 17.160 would temper the near term bearish outlook. First resistance is the 10 day moving average crossing at 17.160. Second resistance is the reaction high crossing at 17.600. First support is Monday's low crossing at 16.620. Second support is the reaction low crossing at 16.330.

The U.S. Dollar closed higher on Tuesday as it extends last week's breakout above the 20 day moving average crossing at 80.69. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are 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 Monday'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 80.69. Second support is the 10 day moving average crossing at 80.51.

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