Gold and silver extend gains on euro optimism

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CORONAVIRUS IMPACT

Gold and silver futures extended gains to a fourth session on Monday as market players anticipated central-bank action in both the U.S. and Europe. Traders are hoping for more stimulus efforts after they cheered additional comments in support of the euro and the integrity of the euro zone.

On Monday, October gold extended last week’s rally closed slightly higher at $1,618.70 an ounce on the Comex division of the New York Mercantile Exchange. Gold tasted the upper boundary of a three-month long trading range, which crosses at 1626.90. The mid-range close sets the stage for a steady opening of the next trading session. There are bullish signals indicating sideways trading to higher prices near-term. A close above 1626.90 is needed to confirm an upside breakout of the aforementioned trading range. A close below the 20-day moving average crossing at 1594.20 would temper the near-term friendly outlook. First resistance for gold is the reaction high crossing at 1626.90. Second resistance is the reaction high crossing at 1644.00. First support is the 20-day moving average crossing at 1594.20. Second support is the reaction low crossing at 1550.00.

September silver closed higher on Monday gaining 54 cents, or 2%, to settle at $28.03 an ounce, while extending this month’s trading range. The high-range close set the stage for a steady to higher opening of the next trading session. Sideways trades to higher prices are expected near-term. If September renews the rally off June’s low, June’s high crossing at 29.915 is the next upside target. If September renews this month’s decline, June’s low crossing at 26.105 is the next downside target. First resistance is the reaction high crossing at 29.135. Second resistance is June’s high crossing at 29.915. First support is June’s low crossing at 26.105. Second support is weekly support crossing at 24.689.

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