The yellow and white precious metals have pared most of Monday's Asian gains in North American trading but the metals see strong supports at current levels as the sharp correction in recent days have already brought them to technically justified points of entry.
Both gold and silver used to stay above the 150 moving average since mid-2010, but after hitting fresh record levels early last month the metals have been trending lower and has now touched the 150-day simple moving average in the case of gold and 100-day SMA for silver.
Strong investment appeal for the metals at a time of persistent inflation worries, dollar's continued weakness against majors and several other factors like renewed risk-friendliness of many major global economies are strengthening the technical view of bright-looking entry points for both the metals.
In the short-term, gold appears to have room for falling as low as $1,330-1,325 per ounce as indicated by the Fibonacci retracement but with momentum indicator RSI already at the heavily oversold zone, a rebound is highly likely, with first resistance seen around $1.380, as shown by the 50-day SMA.
Silver that has neared the $27 mark for the first time in two months last week could extend the fall to $26 region but the metal could also make a strong rebound from current levels given the fact that it is testing strong support at the 100-day SMA and also with RSI also backing the same. First target of the white metal could be $29 zone as shown by the 50-day SMA.