Gold prices pressured as global equity markets rally
New York (Nov 7) Safe-haven gold prices are moderately down in early U.S. dealings Thursday. The precious metals bulls continue to be hamstrung by rallying world stock markets that saw the U.S. indexes score record highs again overnight. The gold and silver bulls need a fresh dose of geopolitical uncertainty, which is probably just around the corner. December gold futures were last down $8.00 an ounce at 1,485.20. December Comex silver prices were last down $0.058 at $17.54 an ounce.
Asian and European stock indexes were mostly up overnight. U.S. stock indexes are pointed toward higher openings and more record highs when the New York day session begins.
Trader and investor risk appetite remains elevated as the news from the U.S.-China trade front remains very upbeat. Reports from China Thursday said both countries have agreed to remove their tariffs in tranches. The report said tariffs would be eliminated once the “Phase 1” partial trade deal is signed. There has been no official word from the U.S. on this development. While it is a positive, the trade deal still has to be signed. And remember, the trade negotiations between the world’s two largest economies have been a continuously up-and-down affair regarding progress. Given this history it seems unlikely both nations will now just cruise to the finish line with a trade deal.
The Chinese yuan continued to strengthen against the U.S. dollar on the trade-deal optimism.
The Bank of England held its regular monetary policy meeting Thursday, but no change in interest rates occurred, as expected.
In other overnight news, the European Union lowered Euro zone economic growth in 2019 to 1.1% from 1.2% previously forecast. The EU sees 2020 and 2021 growth at 1.2%.
The key “outside markets” today see the U.S. dollar index slightly up. Nymex crude oil prices are higher and trading around $57.00 a barrel.
U.S. economic data due for release Thursday includes the weekly jobless claims report, consumer credit and the monthly chain store sales index.
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