Gold and silver prices start 2020 with modest gains

London (Jan 2)  Gold and silver prices are modestly higher in early U.S. futures trading Thursday. With the new year under way and the charts looking the most positive they’ve been in months; look for some more technical-based buying from speculators in the coming days and weeks, including the big “fund” traders. A weakening U.S. dollar on the world foreign exchange market is also working in favor of the precious metals market bulls. February gold futures were last up $2.50 an ounce at 1,525.60. March Comex silver prices were last up $0.039 at $17.96 an ounce.

Asian and European stock indexes were mostly firmer overnight. The U.S. stock indexes are also pointed toward higher openings and at or near record highs when the New York day session begins, on this first trading day of 2020.

Trader and investor attitudes remain upbeat, due in large part to the world’s two largest economies, the U.S. and China, seeing a major thaw in the more-than-two-year-old trade war that has slowed global economic growth. A partial trade deal is set to be signed on January 15th.

China’s central bank eased its monetary policy on Wednesday by lowering its banks’ reserve requirement ratios, which will put more money into China’s financial system. That news also worked to boost world equity markets.

There was major protesting in Hong Kong to start the new year, with reports saying more than 400 civilians were arrested and police using pepper spray and water cannons. This matter could again become a front-burner issue for the marketplace, especially if mainland China gets more involved in quelling the protesters.

In other news, the Euro zone December manufacturing purchasing managers’ index (PMI) was reported at 46.3, which was better than market expectations and compares to the November reading of 46.9. A number below 50.0 suggests contraction in the sector.

A feature in the marketplace during the holiday season has been many currencies rallying significantly against the U.S. dollar. The U.S. dollar index did rebound overnight from a five-month low hit earlier this week. The other key “outside market” today sees Nymex crude oil prices near steady and trading around $61.00 a barrel.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the Challenger job-cuts report, the U.S. manufacturing PMI, and the global manufacturing PMI.

KitcoNews