(Kitco News) - Gold and silver prices are posting good advances in early U.S. trading Monday, boosted by another sharp decline in the U.S. dollar index, which hit a two-week low overnight. A dip in U.S. Treasury yields to start the trading week is also a positive for the precious metals markets. More short covering in the futures markets is featured. October gold was last up $14.50 at $1,732.80 and December silver was up $0.683 at $19.445.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed higher openings when the New York day session begins. Stock and financial markets are almost half-way through the month of September with no major marketplace anxiety. The major U.S. stock indexes have seen short-term price downtrends stall out. History shows September and October can be rocky months for the stock and financial markets.
Traders and investors are awaiting the latest U.S. inflation report on Tuesday. The August consumer price index is seen coming in up 8.0%, year-on-year, compared to the July report showing an 8.5% rise. There are some signs in the economy that inflation in the U.S. is cooling off a bit.
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| Bullish sentiment points to a limited short squeeze for gold prices, not a new breakout |
The key outside markets today see Nymex crude oil prices higher and trading around $87.50 a barrel. The U.S. dollar index is solidly lower and hit a two-week low overnight. The yield on the 10-year U.S. Treasury note is fetching 3.298%.
There is no major U.S. economic data due for release Monday but the pace picks up Tuesday.
![Live 24 hours gold chart [Kitco Inc.]](/images/live/gold.gif?0.2924175530478188){kind=small}
Technically, the October gold futures bears have the firm overall near-term technical advantage but the bulls have gained some momentum early this week. Prices are still trending down on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,769.30. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the July low of $1,686.30. First resistance is seen at $1,740.00 and then at $1,750.00. First support is seen at $1,725.00 and then at the overnight low of $1,712.70. Wyckoff's Market Rating: 2.5
![Live 24 hours silver chart [ Kitco Inc. ]](/images/live/silver.gif)
September silver futures bears have the overall near-term technical advantage but the bulls have gained momentum early this week. Silver bulls' next upside price objective is closing prices above solid technical resistance at $21.00. The next downside price objective for the bears is closing prices below solid support at $18.00. First resistance is seen at $19.75 and then at $20.00. Next support is seen at $19.00 and then at $18.445. Wyckoff's Market Rating: 3.0.
