Market Commentary
Gold opened on its highs at 1128.00/1129.00 and ticked lower as the session began. The metal was offered as the dollar went on the offensive, finding moderate support near 1125.00.

This level could not hold as gold later retreat to an intraday low of 1120.50/1121.50. It traded erratically within a narrow range as the metal was unable to find a direction and finally settled at 1123.50/1124.50.

Silver opened at 1745.00/1748.00 and moved quickly higher, peaking at 1752.00/1755.00. It later lost momentum as investors unloaded the metal and it retreated to an intraday low of 1734.00/1737.00. It trended higher as the metal followed stronger oil and copper, closing just below its highs at 1750.00/1753.00.

Technical Commentary
Gold briefly spiked overnight to 1133, but is closing down on the day at current 1124. Gold is turning out to be an excellent 'sideways' trade considering the range over the last month has stayed 1088 to 1145. We remain Neutral Gold, as the current price action does not inspire any directional bias.

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Silver has moved higher again today to current 17.53. We are within striking distance of the 17.64 March high. Our view is that we are about to break higher in Silver toward January's high of 18.85.

We are bullish Silver due to the impulsive wave action and only turn neutral below 16.76. The Gold Silver ratio made fresh lows today taking out previous support at 64.41 to current 64.17. The next Fibo support is seen at 63.16.

Courtesy: Scotia Mocatta

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