Gold, Silver, Copper and SP 500 Commentary For Monday Evening

Gold closed lower on Monday and below the 38% retracement level of this year's rally crossing at 1183.90. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging but turning bearish again signaling that sideways to lower prices are possible near term. If August extends the decline off June's high, the reaction low crossing at 1168.00 is the next downside target. Closes above the 20 day moving average crossing at 1217.90 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 1199.80. Second resistance is the 20 day moving average crossing at 1217.90. First support is today's low crossing at 1176.90. Second support is the reaction low crossing at 1168.00.

Silver closed lower on Monday as it extends the decline off June's high. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging but turning bearish again signaling that sideways to lower prices are possible near term. If September extends the decline off June's high, June's low crossing at 17.230 is the next downside target. Closes above the 20 day moving average crossing at 18.289 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 17.999. Second resistance is last Thursday's high crossing at 18.535. First support is today's low crossing at 17.440. Second support is June's low crossing at 17.230.

Copper closed higher due to short covering on Monday and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 285.55 would confirm that a short term top has been posted. If September renews this month's rally, the reaction high crossing at 312.30 is the next upside target. First resistance is the reaction high crossing at 307.05. Second resistance is the reaction high crossing at 312.30. First support is today's low crossing at 292.50. Second support is the reaction low crossing at 285.55.

The S&P 500 index closed higher due to short covering on Monday as it consolidates some of last Friday's decline. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If September extends this month's rally, June's high crossing at 1129.20 is the next upside target. Closes below last Friday's low crossing at 1059.30 would confirm that a short term top has been posted. First resistance is last Thursday's high crossing at 1099.00. Second resistance is June's high crossing at 1129.20. First support is today's low crossing at 1057.10. Second support is this month's low crossing at 1003.10.

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