Gold modestly up, silver slightly down as both markets stabilize

NEW YORK (November 3) Gold prices are modestly up and silver prices slightly down near midday Monday. The precious metals bulls have stabilized prices after recent higher volatility, which is friendly for both markets. The precious metals traders are awaiting a fresh fundamental catalyst to ignite trending price action. December gold was last up $13.20 at $4,010.40. December silver prices were down $0.105 at $48.055.

In overnight news, China is scrapping a long-standing gold tax incentive, which will no longer allow retailers to offset a value-added tax when selling gold. The rule covers both investment products, such as high-purity gold bars and ingots, and non-investment uses including jewelry and industrial materials. The move is expected to bolster government revenue but will also likely increase the cost of buying gold for Chinese consumers.

The key outside markets today see the U.S. dollar index slightly up. Crude oil prices are firmer and trading around $61.25 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.11%.

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