Strong price gains for gold, silver as both power to all-time highs
NEW YORK (October 16) Gold and silver prices are sharply higher and hit record peaks overnight. December gold hit a new all-time high of $4,263.40 an ounce, as of this writing. December silver reached a record high of $52.89 an ounce. A steady flow of safe-haven demand and technical buying continue to propel prices into the stratosphere. Gold and silver market bears are on the sidelines, unwilling to stand in front of a steaming locomotive. December gold was last up $60.40 at $4,261.10. December silver prices were up $0.987 at $52.35.
Global stock markets were mixed overnight. U.S. stock indexes are pointed to higher openings when the New York day session begins.
In overnight news:
U.S., China continue to posture on trade. U.S. Treasury Secretary Bessent said on Wednesday the possibility of extending a pause of import duties on Chinese goods for longer than three months exists if China halts its plan for strict new export controls on rare-earth elements. The U.S. and China have agreed to a series of 90-day truces, with the next deadline looming in November, and economists describe the latest moves by both sides as attempts to stack up bargaining chips ahead of a likely leaders’ meeting, according to a Bloomberg report. Bessent predicted a coordinated response to China’s move from the U.S. and several allies, saying “we’re going to have a fulsome, group response to this, because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world.” Meantime, President Trump, when asked by a reporter if the world’s two largest economies are in for a sustained trade war if they cannot reach a trade deal, replied: “Well, you’re in one now.” He added, “We have a 100% tariff. If we didn’t have tariffs, we would be exposed as being a nothing.”
India’s P.M. Modi commits to halting Russian oil purchases. President Trump on Wednesday said Indian Prime Minister Narendra Modi vowed to halt purchases of Russian oil, signaling a possible resolution to an issue at the center of the diplomatic and trade rift between the U.S. and India, according to a Bloomberg report. India’s government didn’t confirm it’s complying with Trump’s demands, although it said it’s working to deepen energy ties with the U.S. Trump said Modi assured him that India will not be buying oil from Russia, which Trump called "a big step" and added that he now wants China to do the same thing.
Fed’s beige book: weaker U.S. consumer spending, rising prices. U.S. economic activity was little changed in recent weeks and employment levels held largely stable, according to the Federal Reserve’s “beige book,” released Wednesday afternoon. However, overall consumer spending edged lower, and prices continued to rise, with several districts reporting that input costs increased at a faster pace. The outlook for growth differed by district, with some contacts expecting a pickup in demand over the next six to 12 months, while others pointed to risks such as a prolonged government shutdown. Tariff-induced input cost increases were reported across many districts, but the extent of those higher costs passing through to final prices varied, the Fed said. Some businesses opted to keep selling prices largely unchanged to retain customers, while others fully passed on higher import costs to consumers.
The key outside markets today see the U.S. dollar index weaker. Crude oil prices are firmer and trading around $58.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.024%.
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