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Comex gold futures prices ended the U.S. day session modestly higher Tuesday, hit another fresh five-month high and poked above the key $1,700.00 (U.S.) level on some follow-through buying from Friday's big rally. The precious metals bulls are still glowing in the aftermath of a bullish speech by U.S. Federal Reserve Chairman Ben Bernanke last Friday. December gold last traded up $9.20 at $1,696.90 an ounce. Spot gold was last quoted up $2.00 an ounce at $1,695.25. December Comex silver last traded up $0.898 at $32.335 an ounce.

Following last Friday's commodity and stock market bullish comments from Bernanke at in Jackson Hole, Wyoming, gold and silver market bulls are presently flexing their muscles as it now appears more likely the Fed will implement another round of quantitative easing of U.S. monetary policy. Also, both gold and silver markets look technically strong.

The eyes of the market place are now focused on later this week, when the monthly meeting of the European Central Bank takes place on Thursday. It's expected the ECB will announce a fresh E.U. monetary stimulus plan, which would also likely be at least initially commodity and stock market bullish. ECB President Mario Draghi said overnight the central bank's purchase of short-dated government bonds is within the bank's mandate. On Friday the important U.S. jobs report is released.

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Asian markets were lower overnight following more downbeat economic news coming out of China. The HSBC's China purchasing managers index in August fell to its lowest level since 2009. European markets were little changed ahead of the ECB meeting Thursday. Spanish and Italian bond yields were lower overnight, on some building optimism the EU debt crisis may at least be stabilizing a bit.

In other overnight news, European Union consumer price inflation in July rose at a higher rate than expected, at a 1.8 per cent annual rate. However, that figure is still low and will not likely have any effect on European Central Bank monetary policy decisions.

The U.S. dollar index traded firmer Tuesday on some short covering following recent selling pressure.

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