In early Wednesday trade in the United States, gold and silver prices are slightly down. At midweek, the major outside markets for metals are in negative daily postures: a higher US dollar index, increasing Treasury bond rates, and lower crude oil prices. Down U.S. stock indices, which are now moving lower, will keep a floor under the safe-haven gold and silver markets today. Gold futures for December were last trading at $1,755.10, down $5.80. At the time of writing, December Comex silver was trading at $22.345 per ounce, down $0.263 from its previous close.
Global stock markets were mostly lower in overnight trading. The U.S. stock indexes are pointed to lower openings when the New York day session begins. Trading has turned choppy in the indexes but near-term price downtrends are in place for the S&P and Nasdaq futures. U.S. lawmakers are still struggling to agree upon a big government spending bill as will as a debt-limit bill. Reports say the Biden administration is willing to reduce the size of the spending bill to get Republicans to agree to it.
The U.S. data point of the day is the ADP national employment report for September, which is forecast at up 425,000 jobs versus a gain of 374,000 seen in the August ADP report. This report precedes the more important U.S. employment report from the Labor Department on Friday morning. The key non-farm jobs number in that report is forecast at up 500,000 in September after a paltry gain of 235,000 in August.
Reports said India’s September gold imports in September rose 658% from September of 2020. India imported 91 metric tons of gold in September compared to 12 metric tons in September of 2020. Jewelry makers stocked up as the Indian currency, the rupee, appreciated and gold prices fell.
The key outside markets today see the U.S. dollar index higher and back near last week’s 12-month high. Nymex crude oil futures are slightly down and trading around $78.75 a barrel after hitting a nearly seven-year high overnight. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.566%. For perspective, the German 10-year bund is trading at minus 0.150% and the U.K. 10-year gilt at 1.143%.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the ADP national employment report and the weekly DOE liquid energy stocks report.