Gold and silver futures prices areup and near their daily highs in early-afternoon U.S. trading Monday, supportedin part by a weaker U.S. dollar index, another sell off in the U.S. stockmarket, and rhetoric supporting a more dovish U.S. monetary policy. February goldfutures were last up $10.20 an ounce at $1,251.60. March Comexsilver was up $0.123 at $14.76 an ounce.

The gold and silver markets pushed to their dailyhighs just before midday, at the same time well-known bond trader and fundmanager Jeff Gundlach predicted the U.S. dollar would struggle in the comingnew year, and that U.S. equities will enter a bear market.That was music to the bullish metals market traders’ ears. The small-capRussell 2000 stock index has entered bear market territory—down 20% from itshigh this year.

There were also some commentaries in the presstoday and over the weekend from well- known traders and analysts, and evenPresident Trump and his advisor, calling for the Fed to back off on interest ratehikes. They are part of a growing chorus of market watchers who think theFed has raised interest rates far enough, after what many believe what still beanother U.S. rate hike this week. This dovish rhetoric is U.S. dollar-bearishand precious metals market bullish.

An eventful trading week does lie ahead. The U.S.Federal Reserve’s Open Market Committee (FOMC) meets Tuesday and Wednesday todiscuss monetary policy, while the U.S. government could be shut down at theend of the week if Congress and President Trump cannot agree on a budget plan.Also, the Chinese government holds a big economic meeting this week and couldannounce major new economic initiatives to stimulate the world’s second-largesteconomy. China’s central bank made an unexpected injection of money into itsfinancial system on Monday.