Gold and silver prices pressured by rallying global stock markets

New York (Jan 14)  Save-haven gold and silver prices are lower again in early U.S. futures trading Tuesday. Upbeat trader and investor attitudes, as evidenced by rallying global stock markets, including the U.S. stock indexes hitting record highs overnight, continue to work against the competing asset class of precious metals markets. February gold futures were last down $6.90 an ounce at 1,543.70. March Comex silver prices were last down $0.231 at $17.765 an ounce.

Asian and European stock markets were mixed to weaker overnight. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins. Mild corrective pullbacks are in order on this “turnaround Tuesday,” following recent gains that put U.S. stock indexes at record highs overnight. The geopolitical scene has quieted down markedly the past few days.

The marketplace this week is focused on the U.S.-China partial trade agreement that is scheduled to be signed Wednesday in Washington, D.C. The trade deal is expected to boost global economic growth in 2020. China Tuesday reported its exports grew by just 0.5% in 2019, compared to 10% growth in 2018, as evidence of the trade war with the U.S. damaging China’s economy. China’s imports were reported down 2.8% in 2019 compared to rising 16% in 2018.

In overnight news, the Chinese yuan appreciated to its highest level against the U.S. dollar since last summer, after the U.S. on Monday announced China was no longer on its list of currency manipulators.

The key outside markets today see crude oil prices firmer and trading around $58.50 a barrel. The U.S. dollar index is modestly up early today.

U.S. economic data due for release Tuesday includes the weekly Goldman Sachs and Johnson Redbook retail sales reports, the NFIB small business optimism index, the consumer price index, real earnings and the IDB/TIPP economic optimism index.


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