(Kitco News) - Gold prices are firmer in early U.S. trading Monday, on some more safe-haven buying and on increased speculator interest amid in improving technical picture. December Comex gold was last up $4.60 at $1,117.30 an ounce. September Comex silver was last up $0.022 at $15.235 an ounce.

Risk appetite in the market place is not keen to start the trading week. There is still some safe-haven demand for gold following last week’s devaluation of the Chinese yuan against the U.S. dollar. There are ongoing worries about the health of the Chinese economy, which is the world’s second-largest. Economic and political troubles in Brazil—the world’s seventh-largest economy--are also moving closer to the front burner of the market place.

The key “outside markets” find Nymex crude oil futures lower and hovering near a 6.5-year low that was scored last week. Notions of a world oil glut were bolstered by the Baker Hughes U.S. oil rig count, which was reported on Friday, climbing for the fourth straight week. The other key “outside market” finds the U.S. dollar index firmer to start the trading week. Trading in the dollar index has been choppy recently.

The big data point of the trading week is likely to be Wednesday’s release of the FOMC minutes from last month’s meeting. Traders and investors will be looking for further clues on the precise timing of the expected upcoming U.S. interest rate hike. The U.S. consumer price index is also due out Wednesday and will be closely scrutinized.

U.S. economic data due for release Monday includes the Empire State manufacturing survey, Treasury international capital data, and the NAHB housing market index.

(Note: Follow me on Twitter--@jimwyckoff--for breaking market news.)

Wyckoff’s Daily Risk Rating: 2.0 (Trader and investor market risk aversion is not keen to start the trading week, but neither is risk appetite.)

(Wyckoff’s Daily Risk Rating is your way to quickly gauge investor risk appetite in the world market place each day. Each day I assess the “risk-on” or “risk-off” trader mentality in the market place with a numerical reading of 1 to 5, with 1 being least risk-averse (most risk-on) and 5 being the most risk-averse (risk-off).

The London A.M. gold fix is $1,117.30 versus the previous P.M. fix of $1,118.25.

Technically, December gold futures bears still have the overall near-term technical advantage. However, prices last week broke out above a sideways trading range to suggest a near-term market bottom is in place. Bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,133.80. Bears' next near-term downside price breakout objective is closing prices below solid technical support at $1,090.00. First resistance is seen at Friday’s high of $1,120.40 and then at last week’s high of $1,126.30. First support is seen at $1,110.00 and then at $1,100.00. Wyckoff’s Market Rating: 2.5

September silver futures bears have the near-term technical advantage. However, there are also clues the silver market has put in a bottom, including a rounding-bottom reversal pattern that recently formed on the daily bar chart. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the July high of $15.90 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the July low of $14.33. First resistance is seen at last week’s high of $15.585 and then at $15.90. Next support is seen at Friday’s low of $15.14 and then at $15.00. Wyckoff's Market Rating: 2.5.

By Jim Wyckoff
Monday August 17, 2015 08:27

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