February gold was sharply higher overnight due to a weaker Dollar and higher energy prices. Stochastics and the RSI are becoming overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends the rally off December’s low, the reaction high crossing at 1170.20 is the next upside target. Closes below the 20-day moving average crossing at 1115.10 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 1163.00. Second resistance is the reaction high crossing at 1170.20. First support is the 10-day moving average crossing at 1119.90. Second support is the 20-day moving average crossing at 1115.10.

March silver was higher overnight as it extends the rally off December’s low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends this rally, December’s high crossing at 19.500 is the next upside target. Closes below the 20-day moving average crossing at 17.510 would confirm that a short-term top has been posted. First resistance is the overnight high crossing at 18.890. Second resistance is December’s high crossing at 19.500. First support is the 10-day moving average crossing at 17.743. Second support is the 20-day moving average crossing at 17.510.