Gold prices were slightly higher in early US trading on Monday, setting a new historical high of $2656.10, based on December New York Mercantile Exchange futures. Silver prices fell after recent gains due to profit-taking. Safe-haven demand and bullish charts are driving the rise in the gold market. The same is true for silver, but to a lesser extent. December gold rose by $1.70 to $2647.90, while December silver fell by $0.415 to $31.09.

In overnight/weekend news, Israel continued to intensify its military operations in Lebanon, while Hezbollah increased its missile attacks on Israel. This situation is bound to escalate before it worsens. This event has prompted gold prices to recently reach historical highs.

On Monday, China slightly lowered one of its key interest rates—the 14-day reverse repo rate—by 10 basis points. This continues the Chinese monetary authorities' move to ease monetary policy to stimulate the listed Chinese economy.

On Monday, the Eurozone released some pessimistic economic data, prompting the Dow Jones headline: "Eurozone Faces Contraction Amid Increasing Doubts of a Soft Landing."

Asian and European stock markets fluctuated overnight. At the New York opening, US stock indices opened slightly higher. US stock index bulls have performed very well in the past few weeks, almost continuously until September, with history indicating that September could be a turbulent month for stock markets and financial markets. Today, the headline in Barron's reads: "The Uncertainty of the Federal Reserve Has Become History; Now the Market Needs to Prepare for Election Volatility."

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Today, the main external market sees the US Dollar Index strengthening. Crude oil prices at the New York Mercantile Exchange are slightly higher, trading at around $71.25 per barrel. The benchmark 10-year US Treasury bond yield is declining, currently at 3.75%.

US economic data released on Monday includes the Chicago Federal Reserve Bank's National Activity Index, as well as US services and manufacturing PMI.

Technically, December gold bulls have a strong overall technical advantage in the short term. The next upside price objective for the bulls is to close above the solid resistance level at $2750.00. The next near-term downside price objective for the bears is to push futures prices below the solid technical support level at $2500.00. The first resistance level appears at the overnight contract high of $2656.10, followed by $2675.00. The first support level is at today's low of $2638.60, followed by $2625.00. Our market rating: 9.5.

December silver futures bulls have an overall technical advantage in the short term. On the daily bar chart, prices are in a six-week uptrend. The next upside price objective for the silver bulls is to close above the solid technical resistance level at the July high of $32.46. The next downside price objective for the bears is to close below the solid support level at $29.00. The first resistance level appears at last week's high of $31.755, followed by $32.00. The next support level is expected at the overnight low of $30.67, followed by $30.00.