Gold price near record high on persisting marketplace uncertainty

NEW YORK (October 29) Gold and silver prices are higher in early U.S. trading Tuesday, with gold hovering just below its record highs. Safe-haven demand is keeping a floor under the two precious metals. December gold was last up $8.00 at $2,763.90 and December silver was up $0.319 at $34.32.

Asian and European stock indexes were mixed overnight. U.S. stock indexes are pointed to slightly lower openings when the New York day session begins. The marketplace is quieter this week and it appears many traders and investors are holding off on placing bigger trades until after the U.S. presidential election. The important U.S. jobs report on Friday could also be limiting markets participation this week. The trepidation presently in the marketplace appears to be supporting the safe-haven gold and silver markets.

The key outside markets today see the U.S. dollar index slightly up. Nymex crude oil futures prices are presently higher and trading around $68.25 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.302%. U.S. bond yields have been on the rise lately. The Wall Street Journal reports concerns about the rising U.S. federal deficit are helping to push bond yields up. Investors “are betting a challenging fiscal situation might only get worse after the election,” said the report. The fact that gold is holding near its record high despite a strong U.S. dollar and rising Treasury yields also could be due to safe-haven demand regarding the potential for the U.S. government’s debt to balloon even more.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the advance economic indicators report, the monthly house price index, the S&P Core Logic house indexes, and the consumer confidence index.

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