(Kitco, Fri. Oct. 18th, 2019)- Gold and silver prices are modestly lower in early U.S. trading Friday. The safe-haven metals are pressured in part by the U.S. stock indexes trading very close to their yearly and all-time highs—suggesting little risk aversion in the U.S. marketplace. December gold futures were last down $5.30 an ounce at 1,493.00. December Comex silver prices were last down $0.092 at $17.52 an ounce.
Asian and European stock markets were mostly down overnight, led by sharp losses in China stock indexes. The U.S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
World equity markets were pressured on news that China’s gross domestic product in the third quarter grew by 6.0% on an annual basis, which is the slowest pace in at least 27 years. The GDP 3Q figure was forecast at up 6.1%. On the positive side, China’s industrial production in September was reported up 5.8%, year-on-year, versus expectations for a rise of 4.9%. This news could be deemed bearish for the gold market, given that China is the world’s leading consumer of gold, along with India.
The upbeat Brexit news this week has made for a strong rally in the British pound, which hit a four-month high. The U.K. Parliament will vote this weekend to ratify the agreement.
Nymex crude oil prices are firmer in early U.S. trading Friday and trading around $54.25 a barrel. The other key “outside market” sees the U.S. dollar index slightly lower. The greenback is fading, due in part to some downbeat U.S. economic data released this week that ups the odds of a Federal Reserve interest rate cut coming yet this year.
U.S. economic data due for release Friday includes leading economic indicators. Several Federal Reserve officials will also give speeches today, which will be closely monitored by the marketplace.
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC