Comex gold futures prices are trading sharply higher again Monday morning and have established yet another all-time record high of $1,898.60 an ounce. The market place appears a bit calmer Monday morning, as world stock markets have at least temporarily stabilized amid the ongoing European Union debt crisis. However, there is fresh unrest in Libya that is prompting fresh safe-haven demand for gold. December gold last traded up $21.20 at $1,873.40 an ounce. Spot gold last traded up $16.40 an ounce at $1,870.00. December Comex silver last traded up $1.028 at $43.495 an ounce.
Fresh civil unrest in Libya has temporarily joined the European Union debt crisis as foremost on traders' minds. Rebels appear to have taken control of the Libyan capital of Tripoli, with some reports now saying Libyan leader Gadhaffi is now on the verge of being overthrown. The uncertainty regarding the Libyan situation and the ongoing EU debt crisis are gold market bullish to start the week. There were no major weekend developments on the EU debt crisis front, but traders are keeping a keen eye out for any fresh EU news, and on how the EU financial markets are acting. Don't be surprised to see the European financial markets once again go from a simmer to a boil in the coming days.
The market place continues to look to the U.S. stock market and its daily movements. The daily price moves in the U.S. stock indexes continue to be the gauge for measuring investor risk appetite in the market place.
The U.S. dollar index is trading weaker Monday morning. The greenback bulls have faded recently and the bears have the overall near-term technical advantage. That's also bullish for the precious metals.
Crude oil prices are trading higher Monday morning on short covering following strong losses late last week. Price late last week hint that crude oil futures prices may retest the August low. The crude oil market will continue to be a major "outside market" force for the precious metals.
U.S. economic data due for release Monday includes the Chicago Fed national activity index.
The London A.M. gold fixing was $1,877.75 versus the previous P.M. fixing of $1,848.00.
Technically, gold futures bulls still have the strong overall near-term and longer-term technical advantage and have gained more upside technical momentum recently. The recent bigger daily price moves to the upside do suggest downside price corrections will also be bigger, when they do occur. Bulls' next near-term upside technical objective is to produce a close above psychological resistance at $1,900.00. A push in prices above $1,900.00 would then likely prompt a quick move to challenge major psychological resistance at $2,000.00 an ounce. Bears' next near-term downside price objective is closing prices below psychological support at $1,800.00. First resistance is seen at the record high of $1,898.60 and then at $1,925.00. First support is seen at the overnight low of $1,858.00 and then at Friday's low of $1,824.50.
Technically, silver bulls have the solid overall near-term technical advantage and bulls have recently gained good upside near-term technical momentum. Prices Monday hit a fresh 3.5-month high. Silver bulls' next upside price objective is producing a close above solid technical resistance at $45.00 an ounce. The next downside price breakout objective for the bears is closing prices below major psychological support at $40.00. First resistance is seen at Monday's high of $44.10 and then at $44.50. Next support is seen at Monday's low of $43.30 and then at $43.00.
