Gold prices are posting good gains in mid-morning trading Monday. The market is seeing a short-covering and bargain-hunting bounce after prices were sharply lower and hit a three-week low in overnight trading. A weaker U.S.
dollar and modestly firmer crude oil prices are bullish “outside market”
inputs that are also supporting the precious metals markets. From a technical perspective it appears both the gold and silver bears have become exhausted on a near-term basis, which suggests sideways price action in the near term. Commodity market bulls continue to be held hostage by the recent plunge in crude oil prices. If crude continues its sharp price downtrend, it will be tough for commodity markets, including the precious metals, to sustain upside-trending price action. February gold was last up $20.00 at $1,195.00 an ounce.
