Gold Signals Overbought Condition, Remains Neutral to Bullish

Gold was lower due to profit taking overnight as it consolidates some of the rally off March's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If June extends the aforementioned rally, the 75% retracement level of the December-February decline crossing at 1184.00 is the next upside target. Closes below the 20 day moving average crossing at 1124.60 are needed to confirm that a short term top has been posted. First resistance is Monday's high crossing at 1170.70. Second resistance is the 75% retracement level of the December-February decline crossing at 1184.00. First support is the 10 day moving average crossing at 1140.00. Second support is the 20 day moving average crossing at 1124.60.

Silver was lower due to profit taking overnight as it consolidates some of the rally off February's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If May extends the rally off February's low, the 87% retracement level of the December-February decline crossing at 18.893 is the next upside target. Closes below the 20 day moving average crossing at 17.550 would temper the near term friendly outlook. First resistance is Monday's high crossing at 18.605. Second resistance is the 87% retracement level of the December-February decline crossing at 18.893. First support is the 10 day moving average crossing at 18.005. Second support is the 20 day moving average crossing at 17.550.

The U.S. Dollar was lower overnight as it extends the decline off March's high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 80.52 would confirm that a short term top has been posted while opening the door for a possible test of March's low crossing at 79.73 later this spring. Closes above last Thursday's high crossing at 82.06 are needed to confirm that a short term low has been posted. First resistance is Monday's gap crossing at 81.01. Second resistance is the 10 day moving average crossing at 81.24. First support is Monday's low crossing at 80.22. Second support is March's low crossing at 79.73.


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


Share