Gold sees price pressure on more profit taking

 New York (Nov 22)  Gold prices are moderately lower in early U.S. trading Friday, on some more profit-taking from the shorter-term futures traders, following recent gains. The recent big sell off in the crude oil market and the strong U.S. dollar index are also negatives for the metals markets. December gold was last down $9.50 at $1,842.10 and December Comex silver was last down $0.001 at $24.78 an ounce.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. It may be a quieter trading week in the U.S. as the Thanksgiving holiday is on Thursday, with an abbreviated trading session Friday being historically one of the lowest-volume days of the year. European traders and investors remain worried about Covid lockdowns as infections in Europe and Asia are on the rise.

The markets event of the week could be President Biden’s pick for Federal Reserve Chair. Jerome Powell’s term expires in February. Reports say Powell and Fed governor Lael Brainard are Biden’s top candidates. Biden may announce his pick Tuesday at a speech on the U.S. economy.

The key outside markets today see the U.S. dollar index slightly higher and not far below last week’s 15-month high. Nymex crude oil prices are slightly up and trading around $76.00 a barrel. Oil prices hit a six-week low overnight and it appears a market top is in place. The 10-year U.S. Treasury note yield is presently fetching 1.56%.   

U.S. economic data due for release Monday includes the Chicago Fed national activity index and existing home sales.

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