Gold Market Commentary For Monday Morning

Gold was higher in quiet trading overnight as it extends the trading range of the past seven weeks. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If April extends last week's rally, the reaction high crossing at 1133.90 is the next upside target. Closes below the 10 day moving average crossing at 1109.50 would temper the near term friendly outlook. First resistance is last Thursday's high crossing at 1127.70. Second resistance is the reaction high crossing at 1133.90. First support is the 10 day moving average crossing at 1109.50. Second support is the reaction low crossing at 1084.80.

Silver was higher overnight as it extends the rally off February's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. If May extends the rally off February's low, the 75% retracement level of the December-February decline crossing at 18.291 is the next upside target. Closes below the 20 day moving average crossing at 17.262 would temper the near term friendly outlook. First resistance is the overnight high crossing at 18.015. Second resistance is the 75% retracement level of the December-February decline crossing at 18.291. First support is the 10 day moving average crossing at 17.331. Second support is the 20 day moving average crossing at 17.262.

The U.S. Dollar was slightly lower overnight as it consolidates below the 10 day moving average crossing at 81.61. Stochastics and the RSI are neutral to bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 81.05 are needed to confirm that a short term top has been posted. If June renews this winter's rally, the May 2009 high on the weekly continuation chart crossing at 83.34 is the next upside target. First resistance is March's high crossing at 82.52. Second resistance is the May 2009 high on the weekly continuation chart crossing at 83.34. First support is the 20 day moving average crossing at 81.05. Second support is last Thursday's low crossing at 80.52.

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