Gold Up, Showing Early Signs Of Market Bottom

(Kitco News) - Goldpricesare posting good gains in early-afternoon U.S. trading Monday, with silver justmodestly up. Some positive economic news coming out of China, a major metalsimporter, helped to lift the metals markets today. Also, some short covering inthe gold and silver futures markets was featured following the recent sellingpressure. The gold and silver market bears appear to be exhausted, which beginsto suggest market bottoms are in place. December gold futures were last up$10.20 an ounce at $1,194.40. September Comex silver was last up $0.044 at$14.675 an ounce.

Theforeign exchange market has stabilized early this week following recent turmoilthat was mainly the fault of a severely depreciated Turkish lira. The Chineseyuan climbed today on reports Chinese economic officials want to stimulatespending on infrastructure projects. Late last week it was also reported thatthe U.S. and China will begin low-level trade talks later this month, to try toresolve their 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 near steady and not farbelow last week's 14-month high. Meantime, Nymex crude oil prices are firmerand trading just above $66.00 a barrel. Oil prices hit a seven-week low latelast week and are still trending lower.

Therewas 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 today's low of $1,189.60 and then at$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 today's high of $14.83 and then at $15.00. Next supportis 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 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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