Gold price gains amid positive outside market forces

(Kitco News) - Gold futures prices are solidly higher in early U.S. trading Monday and have rebounded after hitting an eight-month Friday.

Outside market elements are working in favor of the gold market bulls to start the trading week, including lower stock markets, a weaker U.S. dollar index and firmer crude oil prices. Some short covering by the shorter-term futures traders is also featured today, given the recent losses in the gold market. April gold futures were last up $16.10 at $1,793.60 and March Comex silver was last up $0.216 at $27.47 an ounce.

Global stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The stock market traders are taking note of the competing asset class of government bonds, as the 10-year U.S. Treasury note yield is currently fetching 1.369%, a one-year high. Still, one stock market analyst said U.S. T-Note yields would have to rise to around 4% to become competitive with the U.S. technology stock sector, on a return on investment basis. And overall trader and investor risk sentiment remains low, as the U.S. government is set to roll out a new, big financial stimulus package for Americans. Also, Covid-19 infections are on the decline while vaccines are continuing to ramp up.