Gold, silver see solid price gains on bullish news
Gold and silver futures prices are solidly higher in early U.S. trading Friday, supported by renewed hopes for a U.S. Covid-19 stimulus package, ideas of better demand for precious metals from China, and by a drop in the U.S. dollar index today. December gold futures were last up $26.50 at $1,921.60 and December Comex silver was last up $0.669 at $24.535 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are set to open the New York day session higher, on follow-through strength from Wednesday’s and Thursday’s gains. Stock index bulls are having a very good week. China’s main stock markets reopened Friday after an eight-day holiday.
U.S. congressional discussions on a stimulus package for American citizens and businesses are reportedly seeing late-week progress as President Trump has apparently agreed to a larger stimulus package that the Democrats have been seeking. There are still likely hoops to jump through for U.S. lawmakers and most market watchers still any Covid-19 relief checks could be in the mail before the early-November election. Gold and silver market bulls reckon a completed U.S. stimulus deal would further stoke inflationary embers that are already smoldering.
In other overnight news, China’s Caixin services purchasing managers index (PMI) for September rose for a fifth straight month, coming in at 54.8 versus 54.0 in July, and beat expectations for a reading of 54.3. Gold and silver prices were also lifted on the reopening of China’s markets following a long holiday and the upbeat Chinese economic data that will likely prompt better consumer demand for the precious metals.
The important outside markets early today see the U.S. dollar index lower. Nymex crude oil prices are weaker and trading around $40.85 a barrel. The oil market bulls have had a good week, as a major hurricane in the Gulf of Mexico has shut in oil installations. The 10-year U.S. Treasury note yield is presently trading around 0.77%.
U.S. economic data due for release Friday is light and includes monthly wholesale trade.
Kitco News
