Comex gold futures are trading steady to firmer Monday morning in quieter dealings, as a holiday in the U.K. has London businesses shuttered. The key "outside markets" are also trading in a generally subdued fashion Monday. December gold last traded up $1.10 an ounce at $1,239.00. Spot gold was last quoted down $1.30 at $1,237.00.

The U.S. dollar index is trading slightly lower, while the U.S. stock indexes are steady to weaker. Crude oil prices are also slightly lower. Trading is likely to be at least a bit quieter this week in the U.S. and European markets, as the month of August ends and ahead of the last summer holiday weekend in the U.S. Many Europeans and Americans take vacation time during the month of August.

Precious metals traders are also awaiting Friday's U.S. employment report, which is expected to show the key non-farm payrolls figure to be down 123,000 in August, following a decline of 131,000 jobs in July. The unemployment rate is forecast to come in at 9.6% from the July reading of 9.5%. Look for more active trading in the precious metals and other markets in the immediate aftermath of Friday morning's jobs data.

Major U.S. economic data due out Monday is light, with only personal income and spending data set for release. The economic report slate gets significantly heavier on Tuesday.

Technically, the gold market bulls still have the overall near-term technical advantage, which continues to invite fresh speculative buying interest into the market. Comex gold prices are in a solid five-week-old uptrend on the daily bar chart. The longer-term charts also still fully favor the gold market bulls, as they, too, show longer-term price uptrends in place.

The next near-term upside price objective for the gold market bulls is to push and close December futures prices above solid chart resistance at $1,250.00. The bears' next near-term downside price objective is producing a close in December gold futures below solid chart support at last week's low of $1,211.70.

For December gold, shorter-term technical resistance is located at the overnight high of $1,240.40 and then at last week's high of $1,246.00. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at Friday's low of $1,233.50 and then at $1,230.00. Today's key near-term Fibonacci pivot level for December gold: $1,228.00.

Comex silver futures are higher Monday morning. Prices Friday hit a fresh nine-week high. December silver last traded up 15.6 cents at $19.23 an ounce. The silver bulls have upside near-term technical momentum and are looking for more on the upside in the near term. Silver will continue to follow the lead of the gold market, however.

The next near-term upside price objective for the silver market bulls is to push and close December Comex futures prices above solid chart resistance at the June high of $19.55 an ounce. The next downside price objective for the silver bears is to push and close December silver prices below solid technical support at $18.40.

December silver finds shorter-term technical resistance at overnight high of $19.275 and then at Friday's high of $19.375. Buy stops likely reside just above those levels. Shorter-term technical support for December silver is located at the overnight low of $19.075 and then at $19.00. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for December silver futures is located at $18.93.

By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com

Editor’s Note: Meet the Kitco News Team at the upcoming Kitco Metals eConference September 12-13, 2010. A not-to-be missed event featuring Ron Paul, Marc Faber and other industry heavyweights. The eConference is free with Pre- Registration www.kitcoeconf.com.

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