(Kitco News) - Gold prices were ending the U.S. day session modestly higher Monday. Silver prices were posting slight gains. Both markets were near their session highs after they hit two-week lows early on. Short covering by the futures traders and some perceived bargain buying in both cash and futures supported the late-session bounce in prices. December Comex gold was last up $1.90 an ounce at $1,282.40. December Comex silver was last up $0.022 at $17.10 an ounce.

World stock markets were mostly higher Monday, but U.S. stock indexes were narrowly mixed in early-afternoon U.S. trading. Still, world stock markets are at or near record or multi-year highs, which underscores the keener risk appetite in the marketplace that has been a bearish element for safe-haven gold.

Japanese elections held over the weekend showed Prime Minister Abe and his coalition government with a lop-sided victory. World stock markets were buoyed on the news from Japan, as Abe is considered to be more dovish on monetary policy.

The U.S. dollar was higher Monday and hit a two-week high overnight. The firmer greenback also limited the upside in the precious metals markets. The other key “outside market saw Nymex crude oil futures prices near steady and trading just below $52.00 a barrel.

Traders and investors this week are anticipating who will be President Trump’s nominee for the next chairman of the Federal Reserve. Jerome Powell has moved to the top of the list among many Fed watchers. Most believe a new Fed chair pick from Trump will be more of a monetary policy hawk than current Fed Chair Janet Yellen. Such a scenario has also been a bearish element for the precious metals markets.

Also this week the European Central Bank holds its regular monetary policy meeting on Thursday. Many expect the ECB to announce more details on the winding down of its bond-buying program.

Technically, December gold futures prices closed nearer the session high. Bulls and bears are on a level overall near-term technical playing field. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at the October low of $1,262.80. First resistance is seen at $1,285.00 and then at $1,292.90. First support is seen at today’s low of $1,273.60 and then at $1,270.00. Wyckoff's Market Rating: 5.0

December silver futures prices closed nearer the session high today. The silver bulls still have the slight overall near-term technical advantage, but need to show fresh power soon to keep it. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at $17.50 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at the October low of $16.345. First resistance is seen at $17.315 and then at $17.50. Next support is seen at $17.00 and then at today’s low of $16.87. Wyckoff's Market Rating: 5.5.

December N.Y. copper closed up 220 points at 318.75 cents today. Prices closed near the session high. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 330.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 300.00 cents. First resistance is seen at 321.60 cents and then at the October high of 325.95 cents. First support is seen at 313.80 cents and then at last week’s low of 311.20 cents. Wyckoff's Market Rating: 7.5.

By Jim Wyckoff

For Kitco News

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