Comex gold futures prices are trading sharply higher Wednesday morning and soared to yet another new all-time record high of $1,675.90, basis December futures, as of this writing. Strong safe-haven investor demand, including from central banks, continues to boost the precious metals markets. The world market place has quickly moved to a "risk off" mode, and that's fully bullish for gold. December gold last traded up $26.50 at $1,671.00 an ounce. Spot gold last traded up $14.00 an ounce at $1,635.00. December Comex silver last traded up $0.997 at $41.115 an ounce.

Investors and traders worldwide are now focusing on the prospects of a "double-dip" worldwide economic recession following a spate of weak economic data coming from the major world economies. Friday's U.S. jobs report is anxiously awaited, and most traders reckon that report will bolster notions the U.S. economy is sputtering.

The European Union sovereign debt crisis is back on the front burner now that the U.S. debt-limit issue has been addressed by the U.S. government. Italian and Spanish bond yields are this week at Euro-era record highs. The EU debt situation is much more serious than the U.S. debt woes and it could deteriorate into a worldwide debt contagion. This notion is one reason gold prices are soaring.

There is talk in the gold market that many traders went short gold late last week, figuring that a U.S. debt deal would be reached before the August 2 deadline and gold prices would then back off significantly when the debt deal was reached. Those shorts have been squeezed and have been forced to cover their losing bets this week, which only drove gold prices still higher. Veteran traders know that when seeming "lay-up" or "no-brainer" trading ideas are put to work, trouble usually lies ahead for them.

The U.S. dollar index is trading lower Wednesday morning, which is also bullish for the precious metals. The dollar index bears still have the overall near-term technical advantage. However, it's near present price levels in the dollar index that historical lows have been put in place.

Crude oil prices are trading weaker again Wednesday morning and hit a fresh five-week low overnight, amid the world economic slowdown worries. Crude will continue to be a major "outside market" force for the precious metals.

U.S. economic data due for release Wednesday includes the ADP national jobs report, the weekly MBA mortgage applications survey, manufacturers shipments and orders and the ISM non-manufacturing report.

The London A.M. gold fixing was $1,667.50 versus the previous P.M. fixing of $1,637.75.

Technically, December Comex gold futures bulls have the strong overall near-term technical advantage as prices have hit new all-time record highs on a regular basis recently. Importantly, there are still no early technical warning signals to suggest a market top is close at hand. Thus, the path of least resistance for prices will remain sideways to higher. Keep in mind there will likely be a corrective pullback soon, which should not be unexpected, nor would it be bearish. Bulls' next near-term upside technical objective is to produce a close above major psychological resistance at $1,700.00. Bears' next near-term downside price objective is closing prices below psychological support at $1,600.00. First resistance is seen at the record high of $1,675.90, at $1,700.00. First support is seen at the overnight low of $1,654.40 and then at $1,637.50.

December silver futures bulls have the overall near-term and longer-term technical advantage and have regained fresh upside near-term technical momentum the past two days.  However, the silver bulls are still not in the powerfully bullish technical posture that gold now enjoys. Bulls' next upside price objective is producing a close above solid technical resistance at last week's high of $41.47 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at this week's low of $39.08. First resistance is seen at $41.47 and then at $42.00. Next support is seen at $41.00 and then at the overnight low of $40.625.

Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It's free, too. My account is @jimwyckoff .

By Jim Wyckoff