(Kitco News) - Comex December gold futures ended the U.S. day session sharply higher, near the daily high and hit a fresh six-week high Monday. Strong safe-haven demand was featured as the precious yellow metal moved closer to the $1,800.00 level. The ongoing European Union sovereign debt crisis boosted the precious metals again Monday. Instead of Greece being the debt-strapped and troubled EU nation in the spotlight, this week it’s Italy. December gold last traded up $35.90 at $1,792.00 an ounce. Spot gold last traded up $36.50 an ounce at $1,791.25. December Comex silver last traded up $0.716 at $34.80 an ounce.

Safe-haven investor demand is again featured to start the trading week amid the latest developments regarding the European Union financial and sovereign debt crisis. Just as it appears Greece will comply with its EU debt plan constricts—after a weekend shuffle in its government—now Italy has come to the front burner as its bond yields Monday soared to Euro era highs and rumors of an Italian leadership change circulated. Traders and investors worldwide are wondering what will be next, but most reckon whatever it is, it won’t be positive for the market place. This heightened uncertainty remains a bullish factor for the precious metals markets.

The U.S. dollar index traded slightly higher Monda, also on safe-haven investment demand amid the EU debt crisis. The dollar index bulls have gained upside near-term technical momentum recently to suggest the index has put in a near-term market low.

Crude oil prices were modestly higher Monday and pushed above $95 a barrel, and that was also an underlying bullish “outside market” force for the precious metals. Crude oil prices remain in a near-term uptrend.

News reports Monday that the German government said its gold reserve sales were “off the table” regarding one way to help pay for the European Union debtor nations’ bailout was also greeted by the gold market bulls.

The London P.M. gold fixing was $1,782.00 versus the previous P.M. fixing of $1,749.00.

Technically, December gold futures prices closed near the session high Monday and hit another fresh six-week high. Bulls have solid the overall near-term technical advantage and gained more upside technical momentum Monday. A six-week-old uptrend is in place on the daily bar chart. Bulls' next upside technical objective is to produce a close above psychological resistance at $1,800.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,700.00. First resistance is seen at $1,800.00 and then at $1,825.00. First support is seen at $1,769.50 and then at Monday’s low of $1,754.00. Wyckoff's Market Rating: 7.5.

December silver futures prices closed nearer the session high Monday. The silver bulls have the overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Silver bulls' next upside price objective is producing a close above solid technical resistance at the October high of $35.70 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at last week’s low of $32.105. First resistance is seen at $35.00 and then at $35.50. Next support is seen at $34.50 and then at $34.00. Wyckoff's Market Rating: 6.5.

December N.Y. copper closed down 280 points 353.65 cents Monday. Prices closed nearer the session low. Copper bulls have the slight overall near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at the October high of 375.00 cents. The next downside price breakout objective for the bears is closing prices below solid technical support 330.00 cents. First resistance is seen at 360.05 cents and then at Monday’s high of 365.35 cents. First support is seen at Monday’s low of 349.05 cents and then at last week’s low of 346.20 cents. Wyckoff's Market Rating: 5.5.

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

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