Daily Gold and Silver Market and Technical Commentry

Daily Gold and Silver Market and Technical Commentry and Tips To trade

Market Commentary:-

Gold Market opened at 947.25/948.25 and was well bid as the session began, peaking at

949.75/950.75. However this move quickly reversed as oil tumbled, equity markets

slumped and the dollar rallied. Gold Market retreated to an intraday low

941.50/942.50 before making back lost ground. The dollar gave back ground

helping the metal climb during much of the afternoon, finally settling at

945.25/946.25.

Silver opened on its highs at 1441.00/1444.00 in New York. Falling oil and base

metal prices inspired moderate selling as the trading day got underway and silver Market

slipped to a low of 1424.00/1427.00. It traded sideways until the early afternoon

as it became well bid, finding resistance near 1440.00. The metal later ticked

lower as the session unwound, finally closing at 1434.00/1437.00.

Technical Commentary:-

Gold weakened again today, but still resists the urge to collapse through the 50-

day coming in at $941.00. This support continues to be reinforced by the 38.2%

Fibonacci retracement level we pointed to yesterday. Gold Marginally past that point lies

one month uptrend support at $938.63. The market tone for the metal remains soft,

and only a move above yesterday's intraday high would reverse the psychology of

the price action.

Silver continued to be biased to the downside today; however most medium term

studies continue to generate buy signals. The MACD is trading above the signal

line (buy signal); the 9-day moving average (14.3250) is trading above the 21-day

(13.88); and the overall upward trend will remain intact until a breach of 13.80.

Accordingly, the outlook for silver remains cautiously bullish. Support comes in at

the 21-day moving average of 13.88, while resistance comes in at intraday congestion

of 14.50 followed by 14.80.