By Alan Fein

(AXcess News) New York - In Europe, the euro rose to $1.417 Monday from Friday's $1.402 close as stocks continue to lag.  Gold and silver prices showed upward movement Monday as well, suggesting a new rally in metals could loom.

Standard Bank analyst Walter de Wet called metals trading "quiet" early Monday while pointing out that gold prices were narrow, noting that precious metals trading would be affected by the direction of US equities markets.  Yet the Dow lost 4 percent last week, having declined on Friday for the third consecutive day.

"Like base metals and energy, precious metals remain highly dependent on what is happening in other financial markets - especially US equities," said de Wet.

The Standard Bank analyst went on to say that, "We have seen some good two-way interest in gold coming from different locations this morning. The $1,103 level provides resistance. On the downside, we continue look at $1,085 as key support for gold."

At 8:45am Eastern Time in New York, gold was trading up  $4.50 per ounce, or 0.41%, at $1,096.50, nearing the 'resistance level', de Wet says could signal a sell.   Yet silver managed to outpace gold rising 13 cents per ounce, or nearly 0.8%, to climb back into the $17 range at $17.06.

With 15 minutes to go before this week's trading session in New York begins in stocks, the gold composite closed Friday at 930.7 after reaching an intra-day hi of nearly 950.  Yet with future prices already showing gains, the Gold Composite will most-likely move up.

The real question is, will gold and silver move back into a rally this week if stocks overall remain flat.  De Wet says oil futures remain flat at $74.10 to slightly negative and perhaps the analyst's take on the dollar denominated energy market could give metals enthusiasts a clue as to where gold and silver prices will go.