MARKET IS OPEN (closes in 7 hrs. 58 mins.)
Oct 02, 2019 09:02 NY Time
(Kitco, Wed. Oct 2nd, 2019) – Gold and silver prices are slightly higher in early U.S. trading Wednesday on some mild safe-haven demand as risk aversion has up-ticked a bit at mid-week. December gold futures were last up $1.80 an ounce at 1,490.70. December Comex silver prices were last up $0.043 at $17.345 an ounce.
The just-released ADP national employment report for September came in at up 135,000. The ADP jobs growth number was forecast to be up 125,000. The ADP report is a precursor to Friday’s more important employment situation report for September from the U.S. Labor Department. Friday’s key non-farm payrolls number is forecast to be up 145,000 in September.
Risk aversion is back in the world marketplace at mid-week, as dour manufacturing reports from the U.S. and Europe on Tuesday have spooked traders and investors. Manufacturing activity in the U.S. slowed to a 10-year low in September, according to the Institute of Supply Management.
The U.S.-China trade war is mostly to blame for the slowdown in global economic and trade growth, many agree. The rhetoric between both sides has been and continues to be upbeat one day and downbeat the next—leaving traders and investors perplexed.
Asian and European stocks were mostly lower overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. China markets are closed this week for a holiday.
Violence in Hong Kong has escalated this week, with the national holiday in China. A protester was shot by police and is in critical condition, reports said. This is also adding some anxiety to the marketplace.
Traders are still monitoring world government bond markets following a surprisingly very poor pubic acceptance of the latest bond offering from the Japanese government. However, at mid-week U.S. Treasury bonds have recovered amid ideas of an easier monetary policy coming from the Federal Reserve, following the weak manufacturing data reported on Tuesday.
The U.S. dollar index is higher in early U.S. trading. The USDX hit a contract and two-year high on Tuesday. Look for the greenback to continue to appreciate for at least the near term. Meantime, Nymex crude oil prices are slightly higher and trading around $53.80 a barrel.
Other U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ISM New York report on business, and the weekly DOE liquid energy stocks report. Federal Reserve officials are also slated to give speeches today.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com