Research

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Gold prices are tradingnear steady in early-afternoon U.S. trading Tuesday. Some mild safe-havendemand has been seen in gold early this week, amid Brexit turmoil, thesurprising resignation of India’s central bank head, and the threat of a U.S.government shutdown.

U.S. stock indexes sold off at middayafter a very contentious, face-to-face meeting between President Trump andDemocratic leaders of the House and Senate, regarding Trump’s desire to build awall on the border with Mexico. Trump strongly threatened to close down theU.S. government unless he gets his way. Gold prices did not see a majorreaction to that news.

World stock markets were mostly higherovernight. The world marketplace was encouraged that a high-level telephonecall took place Monday between trade officials of the U.S. and Chinesegovernment. The two sides have until March 1 to reach a trade deal, or the U.S.has threatened to levy more trade penalties against China.

Brexit turmoil and uncertaintyregarding when and how the U.K. will depart the European Union still haveEuropean stock and financial markets a bit unsettled. Prime minister TheresaMay Monday called off Tuesday’s vote on her Brexit plan, which most reckonedwould be voted down anyway. The Euro currency and British pound sunk on the news.

In overnight news, Indian stock andfinancial markets gyrated after India’s central bank chief abruptly quit. TheIndian rupee dropped sharply on the news. There was also likely some safe-havendemand for gold coming out of India on the news.

Today’s U.S. November producer priceindex report showed a rise of 0.1% from October, which was just slightly abovemarket expectations, but still showed inflation in the U.S. is not problematic.Also, inflation in the U.S. has actually declined a bit from the summertime.There are still no early technical clues the crude oil market is close to abottom. Source:Kitco


 
Posted on 12/12/2018 9:00:00 AM

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