Gold
showed negative movement on Monday to close at $1,571.89, down $8.39. Despite
a negative closing, gold has registered a higher high and higher low
suggesting a potential for upside. A rise above yesterday’s high will deliver
gains in the range of $1,592-$1,611, while a fall below Friday’s low ($1,549)
will cause the downward trend to resume. Meanwhile, the indicators are mixed,
signaling a neutral view.
Investors are recommended to stay ‘long’ above $1,549. The support and
resistance are at $1,565.21 and $1,580.58,
respectively.
Silver
traded in a range of $0.29 and closed at $27.25, down $0.04. The current
formation (higher high and higher low) suggests that the recovery is likely to
continue with an initial target of $28.11 (14-DMA). However, a drop below
$26.62 will cause the downward trend to resume. Meanwhile, the RSI has become
flat and the Stochastic Oscillator has continued to rise, supporting a neutral
to positive view.
We
recommend investors to view any downside as an opportunity to ‘Buy’, with risk
defined below $26.62. The support and resistance are at $26.98 and $27.56,
respectively.
