Comex gold prices ended higher Monday as bargain hunters stepped in to buy an early dip to send prices to a new all-time record high of $1,407.20 an ounce, basis the nearby December contract. December Comex gold last traded up $8.50 at $1,406.20 an ounce. Spot gold last traded up $12.30 at $1,407.00.

Bullish technical and fundamental factors continue to invite fresh investor demand into the gold market. One key factor boosting gold prices recently has been the buying of gold as a hedge against further depreciation of the U.S. dollar and other major world currencies. Traders are anxiously awaiting the late-week G-20 meeting in Seoul, at which major industrial nations are likely to discuss currency market fluctuations.

Reports overnight said World Bank president Robert Zoellick has stated gold should be an "international reference point" for currency market movements. Zoellick's statement was surprising to most market watchers.

The U.S. dollar index traded solidly higher Monday, on a short-covering bounce in a bear market. While the dollar index remains near-term technically and fundamentally weak, which is bullish for the precious metals, any sustained rebound in the dollar index would likely be temporarily bearish for gold and silver. However, the gold market has enough strong fundamental and technical factors in its favor that even a near-term rally in the U.S. dollar index is not likely to change the overall bullish posture of the gold market.

The London P.M. gold fixing was $1,388.50 versus the previous P.M. fixing of $1,395.50 an ounce.

Technically, December gold futures prices closed nearer the session high Monday. Gold bulls have the solid overall near-term and longer-term technical advantage, and gained more upside power Monday. A 3.5-month-old uptrend on the daily bar chart is in place. Bulls' next near-term upside technical objective is to produce a close above technical resistance at $1,450.00. Bears' next near-term downside price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at Monday's all-time high of $1,407.20 and then at $1,412.50. Support is seen at $1,400.00 and then at $1,390.00. Wyckoff's Market Rating: 9.5.

December silver futures closed up 63.2 cents at $27.38 an ounce Monday. Prices closed session near the session high and hit another fresh 30-year high. Silver bulls have the solid overall near-term technical advantage and gained more power Monday. The market is now short-term overbought, technically, and due for a corrective pullback soon. Prices are in a 3.5-month-old uptrend on the daily bar chart. The next downside price objective for the bears is closing prices below solid technical support at $25.00. Bulls' next upside price objective is producing a close above solid technical resistance at $28.00 an ounce. First resistance is seen at Monday's high of $27.64 and then at $27.75. Next support is seen at $27.00 and then at $26.75. Wyckoff's Market Rating: 10.0.

December N.Y. copper closed down 30 points at 394.55 cents Monday. Prices closed near mid-range. A firmer U.S. dollar index today did limit buying interest in copper. The copper bulls still have the solid overall near-term technical advantage. Prices are in a five-month-old uptrend on the daily bar chart. Bulls' next upside objective is pushing and closing prices above major psychological resistance at 400.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 370.35 cents. First resistance is seen at last week's high of 399.55 cents and then at 400.00 cents. First support is seen at Monday's low of 392.00 cents and then at 390.00 cents. Wyckoff's Market Rating: 8.0.

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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