Safe-haven bids, bullish charts continue to push gold to all-time highs

NEW YORK (February 10) Gold prices are sharply up and hit new record highs Monday. Prices are now within striking distance of $3,000.00 an ounce. Gold and silver markets are continuing to see safe-haven demand amid concerns about global economic growth as the U.S. is slapping more tariffs on its trading partners. The rapid changes taking place in other U.S. government policies also has the marketplace nervous. Bullish technicals are also driving chart-based buying in the yellow metal. April gold was last up $39.70 at $2,927.40. March silver prices were last up $0.027 at $32.47.

Reports said China has started a pilot program that allows insurers to buy gold for the first time. The move would potentially free up $27 billion of funds, according to one report.  The new policy signals that Chinese authorities recognize gold as an investment alternative as its property sector struggles, Bloomberg said.

U.S. stock indexes are mostly up near midday. For the moment the U.S. stock market traders and investors are not reacting with anxiety to news out over the weekend that U.S. President Trump plans to impose 25% tariffs on all imports of steel and aluminum. Bloomberg reports “the fast pace of U.S. tariffs is causing economists to start re-evaluating their impact on the economy, with some warning that the risks to growth are front-loaded.” Reads a Barrons headline today: “Stock markets think Trump is crying wolf on more tariffs.”

The key outside markets today see the U.S. dollar index modestly higher. Nymex crude oil futures prices are higher and trading around $72.40 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.5%.

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