Gold Market Commentary For Friday Morning

Gold was lower overnight as it consolidates some of this week's rally but remains above the 20 day moving average crossing at 1139.00. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 1139.00 are needed to confirm that a short term top has been posted. If June renews the rally off March's low, the 75% retracement level of the December-February decline crossing at 1184.00 is the next upside target. First resistance is the 10 day moving average crossing at 1147.90. Second resistance is last Monday's high crossing at 1170.70. First support is Monday's low crossing at 1124.30. Second support is the reaction low crossing at 1102.40.

Silver was lower overnight as it consolidates some of this week's rally. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. Closes below Monday's low crossing at 17.490 would confirm that a short term top has been posted. If May renews the rally off February's low, the 87% retracement level of the December-February decline crossing at 18.893 is the next upside target. First resistance is Thursday's high crossing at 18.170. Second resistance is last Monday's high crossing at 18.605. First support is the February-March uptrend line crossing near 17.630. Second support is Monday's low crossing at 17.490.

The U.S. Dollar was higher overnight as it extends the rally off last week's low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If June extends this week's rally, March's high crossing at 82.52 is the next upside target. Closes below the 10 day moving average crossing at 81.00 are needed to confirm that a short term top has been posted. First resistance is the overnight high crossing at 82.20. Second resistance is March's high crossing at 82.52. First support is the 20 day moving average crossing at 81.23. Second support is the 10 day moving average crossing at 81.00.


The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010


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