US Gold prices finished pit trade higher Monday, during the session prices tapped a 7-month high.

Prices were trading lower in early US action, but then moved higher following remarks from the Chicago Federal Reserve president Charles Evans, who made dovish remarks on US monetary policy.

Mr. Evans suggested US monetary policy could remain very accommodative for some time to come.

Technical buying and bargain hunting also kicked in on the 1st day of the new Quarter. The Gold and Silver markets are in solidly Bullish near-term technical mode.

Dec Gold last traded + 8.10 at 1,782.00 oz

Spot Gold was last quoted + 8.70 at 1,780.50 oz.

Dec Comex Silver last traded + 0.393 at 34.97 oz.

A stronger-than-expected reading from the US manufacturing sector pushed the USD index up from its daily low and in turn tempered the gains in Gold and Silver.

Comments from Fed Chairman Ben Bernanke at a mid-day gathering in Indiana contained nothing new or market-moving.


In overnight news: Chinese economic data released Monday was downbeat, showing a weak manufacturing sector via its PMI index. China is on Holiday this week, celebrating Golden Week.

A major Japanese economic report was released Monday, it showed Japanese companies are pessimistic regarding their business prospects.

In Europe there was some better-than-expected Eurozone manufacturing data Monday, which helped to lift European stock markets. Spanish and Italian bond yields edged down Monday.

Later in the week there will be some more important US economic data released, including the FOMC minutes Thursday and the employment report on Friday.

The US Presidential debatn Wednesday evening will be closely watched by the market.

The USD index is lower in late trading Monday, but up from the daily low. The USD Bears have the overall near-term technical advantage in here.

Nymex Crude Oil prices firmed Monday, but are off their daily high. Crude Oil Bulls and Bears are level near-term technically.

WTI Crude Oil 92.51 +0.32 (+ 0.35%)

These 2 Key outside markets were mildly Bullish posture for precious metals Monday and will continue to have a significant daily influence on Gold and silver prices.

The London PM Gold fixing is 1,770.50 vs. the prior PM fixing at 1,787.00.


Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.