Gold prices are moderately higher and have pushed back above the key $1,300.00 level in early U.S. trading Monday. A slumping U.S. dollar index that hit a 15-month low overnight is working in favor of the precious metals market bulls. Importantly, the bullish near-term technical posture for gold suggests still more upside price action in the near term. December Comex gold was last up $4.90 an ounce at $1,302.90. December Comex silver was last up $0.163 at $17.295 an ounce.
World stock markets were mostly lower to start the trading week, and that’s also working in favor of the precious metals market bulls. Traders and investors were disappointed last week’s Jackson Hole, Wyoming central bankers meeting did not offer any new guidance on the monetary policies of the world’s major central banks.
The key “outside markets” early Monday see the U.S. dollar index lower and hitting a 15-month low. The greenback bears remain in firm near-term technical control to suggest still more downside pressure on the U.S. currency.
The Euro currency rose to a 2.5-year high overnight as ECB president Mario Draghi last Friday at his Jackson Hole speech failed to mention the Euro’s strength. Traders took that to mean Draghi must not be that worried about the Euro’s recent appreciation.