Gold price firmer as safe-haven demand still supportive

NEW YORK (October 8) Gold prices are modestly up in early U.S. trading Tuesday. Save haven bids are keeping the yellow metal not far below its recent record high. Silver prices are lower. The Middle East geopolitical situation that remains very tense is keeping a floor under the gold and silver markets. December gold was last up $4.70 at $2,670.70 and December silver was down $0.354 at $31.65.

Asian and European stock indexes were mixed overnight. China markets are reopened after an extended public holiday. U.S. stock indexes are pointed to higher openings when the New York day session begins.

The highly anticipated economic briefing by China’s National Development and Reform Commission Tuesday “underwhelmed markets, offering little in the way of new stimulus measures,” said broker SP Angel. That news prompted sell-offs in the Chinese stock indexes, with the Hang Seng index dropping almost 10% and it’s biggest one-day loss in nearly two years.

The key outside markets today see the U.S. dollar index a bit weaker. Nymex crude oil prices are lower after hitting a 2.5-month high overnight and are trading around $75.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.996%.

U.S. economic data due for release Tuesday includes the NFIB small business index, the international trade report, the weekly Johnson Redbook retail sales report, and the RCM/TIPP economic optimism index.

KitcoNews