Gold prices modestly down ahead of U.S. stock market opening

London (Mar 30)  Gold prices are trading a bit weaker in early U.S. trading Monday, as traders await the opening of the U.S. stock market that is trying to stabilize. Silver prices are under stronger selling pressure to start the trading week. June gold futures were last down last down $0.82 an ounce at $1,640.50. May Comex silver prices were last down $0.354 at $14.18 an ounce.

Global stock markets were mostly weaker in overnight trading. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Traders and investors are entering another week uncertainty, as the mood of the marketplace has turned from panic to gloom. U.S. President Trump on Sunday extended the shutdown of most U.S. retail businesses and schools by another 30 days, to April 30. The U.S. can expect a best-case scenario of around 100,000 to 200,000 deaths and millions infected with the illness, said the top U.S. health official over the weekend.

In overnight news, China's central bank Monday cut its main short-term lending rate and injected $7 billion into the financial system in the latest action taken by global policymakers to try and support their markets.

As the first quarter comes to an end Tuesday, market watchers are wondering how many companies and individuals hurt by the coronavirus outbreak can pay their bills, including a domino effect occurring on the matter as the global economy seizes up. Also in question are the major credit ratings agencies and how they will deal with the many big companies that are in a serious financial bind. It’s tough to be a buyer of any markets at all in these conditions, and with the ultimate ramifications of the Covid-19 outbreak still so uncertain.

The important outside markets today see Nymex crude oil prices weaker and hitting an 18-year low of $19.92 a barrel overnight. The U.S. energy industry has shuddered the past three weeks, which has led to much of the selling pressure in the stock market. The U.S. dollar index is higher on a corrective bounce after last week’s strong losses. The 10-year U.S. Treasury note yield is trading around 0.64% Monday morning--well down from last week’s levels.

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