Gold price up on some safe-haven demand amid energy worries
New York (Oct 12) Gold prices are modestly higher in early U.S. trading Tuesday, as the marketplace is unsettled on this day, amid rising energy costs that are impacting other markets, including the metals. December gold futures were last up $6.50 at $1,762.20. December Comex silver was last down $0.05 at $22.615 an ounce.
Global stock markets were mixed but mostly lower in overnight trading. The U.S. stock indexes are pointed to slightly higher openings when the New York day session begins. Traders and investors are still a bit nervous as mid-October nears. On the front burner today are concerns about energy supplies heading into the Northern Hemisphere's winter. Said Bloomberg in a morning email dispatch: Shortages of coal and natural gas heading into winter are expected to keep demand high. The latest pressure on energy supplies comes from record thermal coal prices in China as key mining regions are hit by flooding. The high cost of power is already feeding through to metal prices, with aluminum rising to the highest since July of 2008.
Rising inflation, due in part to the increasing energy prices, is also making the marketplace uneasy. U.S. inflation reports are due out Wednesday and Thursday mornings and will be closely scrutinized.
The troubled Chinese property Giant, Evergrande, reportedly missed another big debt payment and traders are increasingly worried about a contagion effect.
In other overnight news, Germany's closely watched ZEW economic conditions index for October was downbeat, showing a "current conditions" reading of 21.6 versus 31.9 in September.
The key outside markets today see the U.S. dollar index near steady. Nymex crude oil futures are slightly up after hitting a seven-year high Monday, and are trading around $80.75 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.598%.
U.S. economic data due for release Tuesday includes the NFIB small business index, the weekly Johnson Redbook and chain store sales reports. The International Monetary Fund world economic outlook is issued today.
KitcoNews
