PRECIOUS METALS
October gold closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible. If October extends the decline off July’s high, the reaction low crossing at 1260.10 is the next downside target. Multiple closes above the 20-day moving average crossing at 1307.00 are needed to confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 1307.00. Second resistance is July’s high crossing at 1347.00. First support is last Friday’s low crossing at 1280.50. Second support is the reaction low crossing at 1260.10.
September silver closed lower on Monday as it extends the decline off July’s high. The low-range close set the stage for a steady to lower opening when Tuesday’s night session begins trading. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near-term. If September extends the decline off July’s high, the reaction low crossing at 19.490 is the next downside target. Multiple closes above the 20-day moving average crossing at 20.823 are needed to confirm that a low has been posted. First resistance is the 20-day moving average crossing at 20.823. Second resistance is July’s high crossing at 21.630. First support is today’s low crossing at 20.170. Second support is the reaction low crossing at 19.490.
September copper closed higher due to short covering on Monday. The high-range close sets the stage for a steady to higher opening when Tuesday’s night session begins trading. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near-term. If September renews the rally off June’s low, July’s high crossing at 329.45 is the next upside target. If September resumes the decline off July’s high, the reaction low crossing at 312.30 is the next downside target. First resistance is the reaction high crossing at 327.90. Second resistance is July’s high crossing at 329.45. First support is the reaction low crossing at 316.75. Second support is the reaction low crossing at 312.30.
