(Kitco News) - Gold prices are modestly up in early U.S. trading Wednesday and scored another nine-year high overnight. Meantime, silver prices notched a five-week high as the precious metals bulls are pressing the accelerator a little harder. Both markets remain firmly bullish from a charts perspective, suggesting still more upside in the near term. August gold futures were last up $4.30 an ounce at $1,814.30. September Comex silver prices were last up $0.121 at $18.825 an ounce.
Safe-haven demand is also seen in gold and silver amid the rise in Covid-19 infections and on worries about the longer-term ramifications of central banks opening up their spigots of free-flowing cash into their financial systems. Gold bulls are reckoning the piper will be paid at some point down the road.
Global stock markets were mixed in overnight trading. China’s stock market continues to surge following a government-owned media story telling Chinese investors it’s time to buy shares. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Many global stock markets have paused at mid-week following recent rallies. It could be that the alarming rise in Covid-19 cases in some countries, including the U.S., has finally dented trader and investor risk appetite. The U.S. reported a daily record of 60,000 new Covid cases on Tuesday.
In other news, President Trump is now pressuring U.S. state governors to open public schools in the fall, in an effort to further reopen the U.S. economy.
The important outside markets today see Nymex crude oil prices slightly lower and trading around $40.50 a barrel. The U.S. dollar index is slightly higher early today. The yield on the benchmark U.S. Treasury 10-year note is currently around the 0.65% level.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the weekly DOE liquid energy stocks report and the consumer credit report.
How to play this move in gold?