Gold Market Commentary For Wednesday Evening

Gold closed higher on Wednesday and above March's high crossing at 1146.60. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If June extends this rally, January's high crossing at 1164.10 is the next upside target. Closes below the 20 day moving average crossing at 1114.30 would confirm that a short term top has been posted. First resistance is today's high crossing at 1154.20. Second resistance is January's high crossing at 1164.10. First support is the 20 day moving average crossing at 1114.30. Second support is March's low crossing at 1084.80.

Silver closed higher on Wednesday as it extends the rally off February's low. The mid range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought but remain neutral to 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 17.311 would confirm that a short term top has been posted. First resistance is today'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 17.460. Second support is the 20 day moving average crossing at 17.311.

The U.S. Dollar closed higher due to short covering on Wednesday as it consolidated some of last week's decline but remains below the 10 day moving average crossing at 81.59. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. Closes below last week's low crossing at 80.52 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 81.12. Second support is last Thursday's low crossing at 80.52.


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