Gold price weaker as risk aversion recedes a bit
New York (Dec 2) Gold prices are modestly down in early U.S. trading Thursday. Omicron fears have somewhat subsided late this week and that's putting some risk appetite back into the marketplace. A slumping crude oil market this week is also a negative for the metals markets. February gold was last down $6.80 at $1,777.30 and March Comex silver was last up $0.046 at $22.375 an ounce.
Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes are pointed to mixed to higher openings when the New York day session begins. The U.S. stock indexes overnight recovered some of their late-Wednesday losses that came after news that a case of Omicron was discovered in California. That news was not surprising but still rattled the stock market. Overnight news that the World Health Organization said vaccinations would offer at least some protection against the new strain helped assuage worries on the matter. Also, reports say Omicron is no more severe than the other coronavirus strains and may be milder. However, by no means has the marketplace reached calm on the matter. Don't be surprised to see more markets volatility in the near term as more becomes known about Omicron.
In overnight news, the Euro zone reported its October producer price index at up 5.4% from September and up 21.9%, year-on-year. Those hot numbers were even hotter than the elevated PPI numbers that were forecast.
The Bank of America staff of commodity market analysts has forecast the price of Brent crude oil to possibly reach $120 a barrel by the middle of next year. Prices are trading around $70.00 at present. Meantime, OPEC officials said Wednesday that oil markets face a surplus in the first quarter of next year. If I have learned one thing in being in the commodity markets news and analysis business for nearly 40 years, it's that forecasting future price levels for a commodity is mostly an exercise in futility that sets the prognosticating analysts up for future embarrassment. Still, many of us do it out of being compelled or even required to do so.
KitcoNews
