Gold price modestly up as marketplace still edgy

(Kitco News) - Gold prices are modestly higher in early morning trading Friday, on some more safe-haven demand amid keener risk aversion that has been in the marketplace all this week. However, better gains in the precious metal are being squelched by a stronger U.S. dollar index and eroding crude oil prices. October gold futures were last up $2.30 at $1,783.20 and September Comex silver was last down $0.06 at $23.17 an ounce.

Global stock markets were lower overnight. The U.S. stock indexes are pointed to lower openings when the New York day session begins. The U.S. stock index bulls are fading as the indexes are headed for their worst week since June. The CBOE volatility index has risen to its highest level since May. Keener risk aversion has been in play all this week. Many raw commodity futures markets have been hit by the risk-off attitudes. The surging coronavirus delta strain is starting to more significantly impact global economies. The Federal Reserve this week said it remains concerned about the effects of the pandemic on economies and financial markets. While the Fed appears to be presently leaning toward tightening its monetary policy as early as this fall, some market watchers now wonder if the Fed will have to hold off on tightening if the virus continues to negatively impact businesses. Traders and investors are looking ahead to the annual Federal Reserve symposium in Jackson Hole, Wyoming, next week. More clarity on U.S. monetary policy is likely to come out of that meeting.