October gold closed lower due to profit taking on Friday and below the 10-day moving average crossing at 1247.90 signaling that a short-term top might be in or is near.

Stochastics and the RSI are overbought, diverging and are turning bearish hinting that additional profit taking is possible near-term. Closes below the 20-day moving average crossing at 1238.70 would confirm that a double top with June's high has been posted. If October extends the rally off July's low, June's high crossing at 1267.10 is the next upside target. First resistance is Wednesday's high crossing at 1263.20.

Second resistance is June's high crossing at 1267.10. First support is the 20-day moving average crossing at 1238.70. Second support is the reaction low crossing at 1232.40.

December silver closed slightly higher on Friday and the mid-range close sets the stage for a steady opening on Monday.

Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If December extends this week's rally, the July 2008 high crossing at 20.800 is the next upside target. Closes below the 20-day moving average crossing at 19.048 would confirm that a short-term top has been posted. First resistance is Wednesday's high crossing at 20.180. Second resistance is the July 2008 high crossing at 20.800.

First support is the 10-day moving average crossing at 19.623. Second support is the 20-day moving average crossing at 19.048.