Research

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Daily Resources Overview

 

Goldprices are seeing moderate gains in early-afternoon U.S. trading Wednesday.However, the silver market is posting solid gains and has hit a five-week high.Bulls in both metals have upside technical momentum to suggest more upside isin the offing. There are several factors at work supporting the metals thisweek. Some mild safe-haven demand amid Brexit turmoil, upbeat news regardingU.S.-China trade talks, and improving technical chart postures are all workingto bring buyers into the metals markets. February goldfutures were last up $4.90 an ounce at $1,252.10. March Comexsilver was up $0.262 at $14.895 an ounce.

Today’s U.S. economic data point of the week, theconsumer price index for November, came out at unchanged from October, whichwas right in line with market expectations. Recent U.S. inflation reports haveshown very tame inflation, after data released earlier this year raised someconcern regarding rising inflation becoming problematic. The metals markets didnot react to the report.

World stock markets were mostly higher overnight asglobal traders and investors chose to focus on improving prospects for aU.S.-China trade deal, instead of the uncertainty of leadership of the UnitedKingdom. U.S. stock indexes are pointed toward higher openings when the NewYork day session begins. Trading in the U.S. stock indexes has been volatilethis week, with many stock market experts saying to expect this to be the normfor at least a while.

The present U.S.-China trade negotiations are sofar producing tangible results, according to reports coming from both nations.Officials from both sides appear to be upbeat on the progress. The marketplacereckons that if the world’s two largest economies come to terms on trade, thespillover effect would be positive for most world economies. Also, the preciousmetals are supported on the upbeat trade negotiation reports on ideas of betterworldwide demand for the metals due to improved economic conditions if a tradedeal is reached.


 
13/12/2018 9:00:00 AM

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