Gold price near steady, silver sharply down; eyes on stock market
NEW YORK (November 21) Gold prices are not straying far from unchanged in early U.S. trading Friday, while silver prices are sharply lower. U.S. stock market volatility has heated up late this week. Gold traders are likely to take their daily cue from how the U.S. stock indexes perform early today. Solid selling pressure in equities would likely drive better safe-haven demand for the two precious metals. December gold was last up $0.30 at $4,060.00. December silver prices were down $1.14 at $49.18.
The U.S. stock indexes on Thursday experienced their most dramatic intraday price reversals since April, with benchmark indexes falling to their lowest levels in more than two months. “Theories for the sell-off include resurfacing concern around artificial-intelligence projects, a strong delayed U.S. jobs report, and a risk-off signal sent by the drop in Bitcoin. The intraday slide wiped out an early feeling of optimism that U.S. equities would continue a rebound from a sell-off that followed the market’s last record highs near the end of October,” said a Bloomberg report. “What at first appeared to be a blowout earnings report from Nvidia Corp., the chipmaker at the epicenter of the AI race, and a quarterly update from Walmart Inc. that showed consumers are still spending, were quickly overshadowed by a sudden, relentless bout of selling” on Thursday, said the report. Goldman Sachs said that since 1957, there have been eight instances, including Thursday’s, in which the S&P 500 opened more than 1% higher only to reverse and close in the red. Nvidia was the biggest drag on the Nasdaq 100 Thursday, erasing an early 2.4% gain to drop 3.2% in a rout that wiped out almost $400 billion from its intraday high, said Bloomberg. U.S. stock indexes were narrowly mixed overnight, while Asian and European stock markets were down.
European leaders to talk with Ukraine’s Zelenskiy on U.S., Russian-backed ceasefire plan… German Chancellor Friedrich Merz Friday is expected to hold an urgent call with Ukrainian President Volodymyr Zelenskiy and other European leaders regarding a U.S.-Russian plan to end the war in Ukraine that would mean sweeping concessions to Russia. France’s Emmanuel Macron and Keir Starmer of the U.K. will also join the call at midday European time, two government officials said and as reported by Bloomberg. “While the U.S. and Russia have largely sidelined European countries in their push to end the war, Europe’s response to their proposal will be critical in shaping Ukraine’s next move.
The key outside markets today see the U.S. dollar index slightly higher. Crude oil prices are lower and trading around $58.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently 4.065%.
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