Ø  October gold closed lower on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If October extends last week's decline, the reaction low crossing at 1351.60 is the next downside target. Closes above the 10-day moving average crossing at 1398.60 would temper the near-term bearish outlook. First resistance is the reaction high crossing at 1432.90. Second resistance is May's high crossing at 1489.00. First support is the reaction low crossing at 1351.60. Second resistance is August's low crossing at 1272.10.

Ø  December silver closed lower on Monday. The low-range close set the stage for a steady to lower opening when Tuesday's night session begins trading. Stochastics and the RSI remain neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 23.337 are needed to confirm that a short-term top has been posted. If December renews the rally off June's low, the 50% retracement level of the September-June decline crossing at 26.862 is the next upside target. First resistance is August's high crossing at 25.160. Second resistance is the 50% retracement level of the September-June decline crossing at 26.862. First support is the 20-day moving average crossing at 23.338. Second support is the reaction low crossing at 22.320.