Gold Hits 10-Mo. High On Weak Greenback, Bullish Charts

(Kitco News) - Gold prices were ending the U.S. day session solidly up, well above the key $1,300.00 level, and hit a 10-month high Monday. A slumping U.S. dollar index that hit a 15-month low today worked in favor of the precious metals market bulls. Silver prices notched a 2.5-month high today. Also, the bullish near-term technical postures for gold and silver suggest still more upside price action for those markets in the near term. December Comex gold was last up $14.70 an ounce at $1,312.60. December Comex silver was last up $0.338 at $17.47 an ounce.

World stock markets were mostly lower to start the trading week, and that was also working in favor of the precious metals market bulls Monday. Traders and investors were disappointed last week’s Jackson Hole, Wyoming central bankers meeting did not offer any new guidance on the monetary policies of the world’s major central banks.

As the U.S. dollar index dropped Monday, the Euro currency rose to a 2.5-year high. ECB president Mario Draghi last Friday at his Jackson Hole speech failed to mention the Euro’s strength. Traders took that to mean Draghi must not be that worried about the Euro’s recent appreciation.

The other key “outside market on Monday saw Nymex crude oil futures lower Monday. A hurricane has flooded a Houston, Texas and surrounding areas, including major gasoline refineries. This will impact supplies of U.S. gasoline, and demand for crude oil, in the coming weeks.

U.S. economic data due for release Monday was light. The major U.S. data point of the week is Friday’s employment situation report from the Labor Department.

Technically, December gold futures prices closed nearer the session high today. The gold bulls have the solid overall near-term technical advantage. Prices are in a steep seven-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,350.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,290.00. First resistance is seen at today’s high of $1,313.30 and then at $1,320.00. First support is seen at $1,307.00 and then at $1,300.00. Wyckoff's Market Rating: 7.5

December silver futures prices closed near the session high today. The silver bulls have the overall near-term technical advantage and gained more power today. Prices are in a seven-week-old uptrend on the daily bar chart. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $18.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the August low of $16.56. First resistance is seen at today’s high of $17.50 and then at $17.75. Next support is seen at $17.25 and then at today’s low of $17.10. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed up 300 points at 308.65 cents today. Prices closed near mid-range and hit another nearly three-year high today. The copper bulls have the solid overall near-term technical advantage. Prices are in a four-month-old uptrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 325.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 295.00 cents. First resistance is seen at today’s high of 310.95 cents and then at 312.50 cents. First support is seen at today’s low of 305.95 cents and then at 304.00 cents. Wyckoff's Market Rating: 8.5.