Comex gold futures prices ended the prvious U.S. day session modestly higher in choppy, two-sided trading Monday. It was yet another quiet summertime trading day in the market place. There has been little “headline risk” in recent weeks, as much of Europe is on vacation and the U.S. moves through the summertime doldrums.
October gold was higher overnight while extending this summer’s trading range. Stochastics and the RSI are generally bullish. Closes above the reaction high crossing at 1644.00 would confirm an upside breakout of this summer’s trading range while opening the door for additional gains near-term. Closes below last week’s low crossing at 1590.20 would confirm that a short-term top has been posted while opening the door for additional weakness near-term. First resistance is the reaction high crossing at 1626.90. Second resistance is June’s high crossing at 1644.00. First support is the reaction low crossing at 1590.20. Second support is the reaction low crossing at 1584.20.
September silver traded up $0.663 at $28.66 an ounce in the previous session and was higher overnight while extending this summer’s trading range.
Technical charts signal that sideways to higher prices are possible near-term. Monday’s price action could be the beginning of a bullish upside breakout from a sideways and choppy trading range on the daily bar chart. Silver bulls and bears are now watching the near-term technical playing field. Traders may benefit from fresh upside momentum.
If September extends Monday’s rally, the reaction high crossing at 29.135 is the next upside target for silver price. Closes below the 20-day moving average crossing at 27.892 would temper the near-term friendly outlook. First resistance is the overnight high crossing at 28.950. Second resistance is the reaction high crossing at 29.135. First support is the 20-day moving average crossing at 27.892. Second support is the reaction low crossing at 26.575.
