Commodities Brief: Precious metals still range bound in quiet trade

FXstreet.com (Barcelona) - The precious metals finished the week on a quiet note, with gold closing down 0.28% at 1385 and silver giving back 0.97% to close at 22.32.

From a technical perspective, both charts have been consolidating it what appear to be ‘bear flag’ continuation patterns. Often times these patterns will occur after a market becomes oversold after a steep declines such as what happened on May 15th. A daily close below 1370 would confirm the pattern in gold and set a measured move target of near 1270. In regards to silver, a daily close below 21.90 would confirm the pattern and target 20.35.

Short term moving averages on the daily charts remain bearish on the daily chart, with price consolidating below both the downward sloping 9 and 20 dma’s. Initial support in gold sits at 1370 (short term uptrend support line on daily chart), while initial resistance rests at 1397 (high price of previous two days). First support in silver sits at 21.90 (low of previous day), while first resistance rests at 22.65 (high price area of previous two days).