Gold and silver prices up; focus on better consumer demand
New York (Jan 17) Gold and silver prices are moderately higher in early U.S. futures trading Friday. The precious metals market bulls are presently focusing on better global economic prospects in 2020 igniting better consumer demand for the metals. The safe-haven metals are faring well despite keener risk appetite that sees the U.S. stock indexes at record highs and a world geopolitical scene that is presently quiet. February gold futures were last up $8.40 an ounce at 1,558.80. March Comex silver prices were last up $0.146 at $18.085 an ounce.
Asian and European stock markets were mixed to firmer overnight. U.S. stock indexes are pointed toward higher openings and at record highs again when the New York day session begins. Trader and investor risk appetite remains robust amid a quieter geopolitical front. Given the low interest rate environment at present, and no signs of inflation becoming problematic any time soon, many investors reckon the only game in town is and will be buying shares. However, veteran traders are realizing that a whole lot of bullish stock market traders are now on one side of the boat. That situation may not last long.
In overnight news China, the world’s second-largest economy, had its worst annual GDP growth pace in 29 years in 2019, at 6.1%. China’s industrial production was up 6.9% in December, year-on-year, which did beat expectations. All in all, the marketplace deemed the data as more upbeat because China’s economy is picking up speed from what was seen a few months ago.
Meantime, the Euro zone consumer price index was reported up 0.3% in December from November and up 1.3%, year-on-year. Those numbers were in line with expectations but still underscore the very low inflationary environment in the major economies.
The markets are so far paying very little attention to the impeachment process of President Trump. The U.S. Senate is set for Trump’s trial, likely starting in the next couple weeks.
The key outside markets today see crude oil prices slightly up and trading around $58.75 a barrel. The U.S. dollar index is higher early today.
U.S. economic data due for release Friday includes new residential construction, industrial production and capacity utilization and the University of Michigan consumer sentiment survey.
KitcoNews
