Gold Market Commentary For Wednesday Evening

Gold closed lower due to profit taking on Wednesday as it consolidated some of Tuesday's rally but remains above the 10 day moving average crossing at 1117.90. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If April extends Tuesday's rally, this month's high crossing at 1145.80 is the next upside target. Closes below last Friday's low crossing at 1097.30 would temper the near-term bullish outlook in the market. First resistance is today's high crossing at 1133.90. Second resistance is this month's high crossing at 1145.80. First support is last Friday's low crossing at 1097.30. Second support is the reaction low crossing at 1088.50.

Silver closed higher on Wednesday as it extends this week's rebound. The mid range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If May renews the rally off February's low, the 75% retracement level of the aforementioned decline crossing at 18.293 is the next upside target. Closes below the 20 day moving average crossing at 16.823 would confirm that a short term top has been posted. First resistance is last Wednesday's high crossing at 17.665. Second resistance is the 75% retracement level of the December-February decline crossing at 18.293. First support is last Thursday's low crossing at 16.835. Second support is the 20 day moving average crossing at 16.823.

The U.S. Dollar closed lower on Wednesday and below the lower boundary of the trading range of the past six weeks, which crosses at 79.92. The mid range close sets the stage for a steady opening on Thursday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. If June extends this week's decline, the 38% retracement level of the November-February rally crossing at 79.17 is the next downside target. If June renews this winter's rally, weekly resistance crossing at 81.97 is the next upside target. First resistance is the 10 day moving average crossing at 80.50. Second resistance is the 20 day moving average crossing at 80.72. First support is today's low crossing at 79.73. Second support is the 38% retracement level of the November-February rally crossing at 79.17.


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