Gold, silver bulls bounce back strong, but extreme volatility concerning

NEW YORK (October 20) Gold and silver prices are posting very sharp gains in midday trading Monday, on corrective bounces after strong selling pressure on Friday that did, at least temporarily, produce some near-term technical damage. Would-be bargain hunters were featured today as they stepped in to buy Friday’s big dips. However, daily price volatility in gold and silver markets has turned extreme. This is not bullish and suggests, at most, a climaxing phase of the major bull market runs. And, at least, it suggests an unknown time period of choppy, highly volatile trading that could drive away both speculative bulls and bears in the futures markets, for fear of them getting whipsawed. December gold was last up $150.00 at $4,363.90. December silver prices were up $1.316 at $51.40.

Trader and investor sentiment improved early Monday as President Trump sought to ease trade tensions with China after markets were rattled early Friday by U.S. bank-credit woes. However, the safe-haven gold and silver bulls were apparently undeterred by today’s better risk appetite in the marketplace.

Day 20 of the U.S. government shutdown and the resulting lack of U.S. economic data, is bullish for the gold and silver markets, due to the uncertainty of the situation.

Global stock markets were mostly firmer overnight. U.S. stock indexes are higher at midday.

The key outside markets today see the U.S. dollar index slightly firmer. Crude oil prices are down a bit and trading around $57.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.02%.

KitcoNews