Gold, silver see some more price pressure amid better risk appetite

NEW YORK (Mar 16)  Gold and silver prices are slightly lower in early U.S. trading Wednesday, as trader/investor risk appetite is keener at mid-week. Some positive news reports on the Russia-Ukraine war front and the recent big drop in crude oil prices are lifting marketplace sentiment and pushing money back into the stock markets. That’s negative for safe-haven gold and silver. April gold futures were last down $2.80 at $1,927.10 and May Comex silver was last down $0.028 at $24.145 an ounce.

Global stocks markets were mostly higher overnight. The U.S. stock indexes are pointed toward solidly higher openings when the New York day session begins. News overnight that both Russia and Ukraine said there are signs of progress on their discussions to stop the war has boosted trader and investor risk appetite at mid-week. Reports said discussions include having Ukraine become a neutral country like Sweden. However, the shooting and shelling continues in Ukraine.

China and Asian markets rallied sharply overnight on comments from Chinese economic officials that the government will implement market-friendly policies and keep the capital markets running smoothly. Officials also said they wanted more transparency and predictability in their policies. The moves come as China has locked down cities due to the Covid virus again spreading rapidly. That has put price pressure on raw commodity futures markets this week, on notions of reduced demand coming from the world’s second-largest economy.

KITCO