Gold Prices Lifted By Weaker U.S. Dollar, Rising Oil Prices

(Kitco News) - Gold and silver prices ended the U.S. day session firmer Monday, supported by bullish “outside market” forces that saw a weaker U.S. dollar and rising crude oil prices. Short covering (the buying back of previously sold, or short, futures positions) was featured in gold and silver markets today. December Comex gold was last up $6.50 an ounce at $1,278.40. December Comex silver was last up $0.113 at $16.865 an ounce.

The greenback on Monday saw a corrective pullback from recent good gains that saw the dollar index Friday hit a 3.5-month high. Meantime, Nymex crude oil futures prices are trending higher and traded just above $54.00 a barrel Monday. Oil prices Friday hit a six-month high. Oil prices holding above above $55.00 a barrel would be a bullish development for the raw commodity sector.

This week sees a very busy slate of economic data that includes the FOMC meeting that begins Tuesday and ends Wednesday afternoon with a statement. Friday brings the U.S. employment report for October. Also, the Bank of Japan and Bank of England hold monetary policy meetings this week.

News Monday that the U.S. special prosecutor has indicted a key Trump administration election campaign official has so far had a limited impact on the markets.

Tensions early this week have appeared to ease in Spain’s Catalonia region. Catalonia’s leader called for non-violent protests for the regions secession from Spain. Meantime, the Spanish prime minister called for elections in the Region in December.

Reports say President Donald Trump on Thursday will nominate Jerome Powell as the next chairman of the Federal Reserve. This news had little impact on the markets because traders and investors last week started to reckon Powell would be the pick of Trump.

Technically, December gold futures prices closed nearer the session high today. Bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at $1,280.00 and then at last week’s high of $1,285.30. First support is seen at today’s low of $1,269.80 and then at $1,262.80. Wyckoff's Market Rating: 5.0

December silver futures prices closed nearer the session high. The silver bulls and bears are on a level overall near-term technical playing field. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at $17.00 and then at last week’s high of $17.17. Next support is seen at last week’s low of $16.60 and then at $16.50. Wyckoff's Market Rating: 5.0.

December N.Y. copper closed up 75 points at 311.10 cents today. Prices closed near the session high. The copper bulls have the firm overall near-term technical advantage. However, recent price action, including last Friday’s bearish weekly low close, suggests a near-term market top is in place. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the October high of 325.95 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 312.50 cents and then at 315.00 cents. First support is seen at last week’s low of 307.30 cents and then at 305.00 cents. Wyckoff's Market Rating: 6.5.