(Kitco News) - Gold pricesare posting decent gains in early U.S. trading Monday, with silver alsomodestly up, as there is some positive economic news coming out of China, amajor metals importer. Some short covering in the gold and silver futuresmarkets is featured to start the trading week. The gold and silver market bearsappear to be exhausted at present, which does begin to suggest market bottomsare in place. December gold futures were last up $9.60 an ounce at $1,193.80.September Comex silver was last up $0.074 at $14.705 an ounce.
Theforeign exchange market has stabilized following recent turmoil that was mainlythe fault of a severely depreciated Turkish lira. The Chinese yuan has climbedtoday on reports Chinese economic officials want to stimulate spending oninfrastructure projects. Late last week it was also reported that the U.S. andChina will begin low-level trade talks later this month, to try to resolvetheir present trade war.
Ahighlight of the trading week will be the annual meeting of world centralbankers in Jackson Hole, Wyoming, late this week. The Fed's FOMC minutes arealso due out Wednesday afternoon.
Thekey outside markets today find the U.S. dollar index modestly higher and notfar below last week's 14-month high. Meantime, Nymex crude oil prices are nearsteady and trading around $66.00 a barrel. Oil prices hit a seven-week low latelast week and are still trending lower.
Thereis no major U.S. economic data due for release Monday.
Technically,gold bears still have the overall near-term technical advantage amid a pricedowntrend on the daily bar chart. Gold bulls' next upside near-term pricebreakout objective is to produce a close in December futures above solidresistance at $1,226.00. Bears' next near-term downside price breakoutobjective is pushing prices below solid technical support at last week's low of$1,167.10. First resistance is seen at the overnight high of $1,196.50 and thenat $1,200.00. First support is seen at the overnight low of $1,189.60 and thenat $1,180.00. Wyckoff's Market Rating: 2.0
Septembersilver futures bears still have the overall near-term technical advantage.Silver bulls' next upside price breakout objective is closing prices abovesolid technical resistance at $15.50 an ounce. The next downside price breakoutobjective for the bears is closing prices below solid support at $14.00. Firstresistance is seen at the overnight high of $14.83 and then at $15.00. Nextsupport is seen at $14.50 and then at last week's low of $14.315 and then at $14.25.Wyckoff's Market Rating: 2.0.
By Jim WyckoffFor Kitco News
Follow @jimwyckoff