Gold price weaker as bond yields continue to rise

October 11, 2021

 New York (Oct 11)  Gold and silver prices are modestly down in early U.S. trading Monday. Rising government bond yields recently and an appreciating U.S. dollar on the foreign exchange market are bearish elements that are keeping buyers of the safe-haven metals timid. December gold futures were last down $2.40 at $1,755.00. December Comex silver was last down $0.125 at $22.58 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to weaker openings when the New York day session begins. The U.S. government is closed for the Columbus Day holiday Monday, including the U.S. Treasury markets. That is likely to make for quieter trading in the U.S. today. Traders and investors worldwide are tentative to start the trading week. Supply-chain bottlenecks and rising energy prices are prompting worries about slowing global economic growth. Goldman Sachs over the weekend cut its U.S. economic growth forecasts for this year and next. Some European countries are worried about having enough energy for winter heating. These concerns followed an uninspiring U.S. employment report released Friday morning.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil futures are solidly up, hit a seven-year high overnight, and are trading around $81.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.612%. Bond yields are on the rise, which has heightened fears of rising inflation or even stagflation, which is a combination of rising prices and slowing economic growth.  

U.S. economic data due for release Monday includes is light and includes the employment trends index.

KitcoNews

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