The precious metals were able to claw back some of the losses suffered last Friday, with gold finishing up 0.21% at 1386, while silver edged up 1.39% to close at 21.86. Oil was not able to build on previous gains from the last two days, declining 0.33% to finish at 95.77. From a technical perspective, gold and silver need to find support at current levels or they risk the possibility of taking another leg down. Price has been unable to build value above the 9 and 20dma’s which is often a sign market participants are holding a “sell the rally” mentality. Furthermore, the RSI (14) has been unable to build value above 50 on the daily charts which is also a bearish development. Initial support in gold sits at 1375 (previous day low), while resistance is at 1397 (the 9dma). First support in silver is at 21.33 (previous day low), while resistance is at 22.27 (the 9dma). Oil failed to take out critical resistance near the 97.00 (trend line on weekly chart which has been intact since Sept 2012). Both short term moving averages, as well at the RSI (14) remain in neutral set up on the daily chart, as neither side has been able to find enough momentum to produce substantial follow through. First resistance sits at 96.25 (high of previous day), followed by 97.00 (noted earlier). First support sits at 95.19 (previous day low), followed by 94.60 (the 20dma).
Posted on: Tue, 11 Jun 2013 00:42:42 +0000
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