Gold price up on safe-haven buying, bullish charts
NEW YORK (October 1) Gold prices are higher in early U.S. trading Tuesday, on more safe-haven demand and amid firmly bullish technical charts. Silver prices are slightly firmer and benefiting from the same. December gold was last up $16.80 at $2,676.20 and December silver was up $0.142 at $31.60.
Asian and European stock indexes were mixed overnight. China markets are closed for a holiday this week. U.S. stock indexes are pointed to narrowly mixed openings when the New York day session begins.
Fed Chairman Jerome Powell made some markets-sensitive comments in an interview Monday afternoon, hinting that the Fed will make two 0.25% interest rate cuts yet this year. That somewhat disappointed the monetary policy doves, who want to see larger rate cuts. The U.S. stock market briefly sold off before rebounding, while gold prices lost some ground Monday afternoon.
In overnight news, the Eurozone September consumer price index came in at up 1.8%, year-on-year, which is now below the European Central Bank’s inflation target for the first time in three years. That suggests more ECB monetary policy easing is coming.
The marketplace is keeping a close eye on developments in the Middle East. The Israel-Hezbollah military conflict now sees Israel putting troops on the ground in Lebanon. So far, Iran is staying out of direct conflict with Israel. However, this situation is fluid and is keeping safe-haven demand for gold and silver elevated.
In other news, broker SP Angel said this morning in an email dispatch that media reports have suggested the Russian Finance Ministry intends to buy 52 billion rubles worth of precious metals and stones. The INTERFAX news agency via Bloomberg said this will also include platinum and palladium. “The Ministry is aiming to boost the ‘liquid assets in the State Fund of Russia,’” said the broker.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are weaker and trading around $67.75 a barrel. The benchmark 10-year U.S. Treasury note yield is on the decline and is presently fetching 3.764%.
U.S. economic data due for release Tuesday includes the weekly Johnson Redbook retail sales report, the U.S. manufacturing purchasing managers index (PMI), the global manufacturing PMI, the ISM report on business manufacturing, construction spending, the JOLTS survey, and domestic auto industry sales.
KitcoNews
