Gold Market Commentary For Tuesday Evening

Gold closed higher on Tuesday as it extends the rally off March's low. 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 April extends this rally, March's high crossing at 1145.80 is the next upside target. Closes below the 10 day moving average crossing at 1111.00 would confirm that a short term top has been posted. First resistance is today's high crossing at 1138.50. Second resistance is March's high crossing at 1145.80. First support is the 10 day moving average crossing at 1111.00. Second support is March's low crossing at 1084.80.

Silver posted an inside day with a lower close on Tuesday as it consolidates some the rally off February's low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. If May extends this rally, 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 17.274 would confirm that a short term top has been posted. First resistance is Monday's high crossing at 18.145. 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 17.355. Second support is the 20 day moving average crossing at 17.274.

The U.S. Dollar closed higher due to short covering on Tuesday as it consolidated some of last week's decline but remains below the 10 day moving average crossing at 81.64. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 80.86 would 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 81.07. Second support is last Thursday's low crossing at 80.52.

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