Market Commentary
Gold opened at 1055.00/1056.00 in New York. Nonfarm payroll missed expectation however; the unemployment rate improved causing the metal to trade erratically as the session began.

It spiked to an intraday high of 1063.00/1064.00 before slipping, finding support near 1055.00. Dealers later took profit, triggering stops, dragging the metal to an intraday low 1044.00/1045.00. Short covering during the tail end of day carried the metal higher and it finally settled at 1052.50/1053.50.

Silver opened at 1516.00/1519.00 and quickly rallied on the back of US employment data, peaking at 1530.00/1533.00. However, this move higher was short lived as the USD advanced, equities slumped and oil tumbled.

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The metal remained well offered and later plunged, washing out longs, reaching an intraday low of 1464.00/1467.00. Some late day bids carried silver from its lows taking it marginally higher as the session unwound, closing at 1482.00/1485.00.

Technical Commentary
Gold - Near-term technical remain bearish. The candlestick pattern, with yesterday's large drop confirmed today points to a market where the bears are firmly in control. Most studies are providing sell signals and the RSI at 35 has not yet entered oversold territory.

Support comes in at 1050, which is the 50% retrenchment of the April to December rally. A break and close below here will add further downside momentum to the metal.

Silver is also firmly in bearish territory. The metal has now broken and closed below the 200-day moving average (15.96), the MACD is showing no signs of divergence and downward momentum is strong.

The RSI at 25 has not yet entered oversold territory. Silver closed below the 50% retrenchment of the April to December rally (15.64) and is now pressuring 61.8% (14.74).

Courtesy: Scotia Mocatta

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