Gold price modestly up amid friendly outside market forces

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(Kitco News) - Gold pricesare holding mild gains in early U.S. dealings Monday. Light support is comingfrom a weaker U.S. dollar index, firmer crude oil prices and falling U.S.government bond yields on this first trading day of the week and of the month. Decembergold was last up $3.90 at $1,787.80 and December Comex silver was last up $0.006at $23.955 an ounce.

Globalstock markets were mixed but mostly firmer in overnight trading. The U.S. stockindexes are pointed to higher openings and record highs in the S&P 500 andNasdaq indexes when the New York day session begins. As the calendar turns toNovember and the historically turbulent months of September and October are nowbehind, the stock market bulls are feeling even more confident. The seasonal "SantaClaus rally" may carry equities still higher into the end of the year.

Thekey outside markets today see the U.S. dollar index slightly lower. Nymex crudeoil prices are higher and trading around $84.00 a barrel. Meantime, the 10-yearU.S. Treasury note yield is presently fetching 1.573%.

U.S.economic data due for release Monday includes the U.S. manufacturing PMI, theISM report on business manufacturing, and construction spending.

Technically,December gold futures bulls have the overall near-term technical advantage asprices are in a four-week-old uptrend on the daily chart. However, the bullsneed to show fresh power soon to keep the price uptrend alive. Bulls' next upsideprice objective is to produce a close above solid resistance at the September highof $1,836.90. Bears' next near-term downside price objective is pushing futuresprices below solid technical support at $1,750.00. First resistance is seen at $1,800.00and then at the October high of $1,815.50. First support is seen at today's lowof $1.780.20 and then at last week's low of $1,772.40. Wyckoff's Market Rating:6.0

The silver bulls have the overall near-term technicaladvantage. Prices are in a four-week-old uptrend on the daily bar chart, butthe bulls need to show fresh power soon to keep it alive. Silver bulls' next upsideprice objective is closing December futures prices above solid technical resistanceat $25.00 an ounce. The next downside price objective for the bears is closingprices below solid support at $23.00. First resistance is seen at Friday's highof $24.14 and then at $24.50. Next support is seen at last week's low of $23.705and then at $23.50. Wyckoff's Market Rating: 6.0.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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