Gold price up a bit as U.S. government spending in focus

(Kitco News) - Gold prices are modestly higher in early U.S. trading Monday, on some short-covering by the shorter-term futures traders and some mild safe-haven buying ahead of key U.S. government spending hurdles that occur late this week. October gold futures were last up $2.00 at $1,751.70. December Comex silver was last up $0.24 at $22.66 an ounce.

Global stock markets were mixed but mostly firmer in overnight trading. The U.S. stock indexes are also pointed to mixed openings when the New York day session begins. Focus this week is on U.S. government spending. President Biden’s infrastructure package is set for a House of Representatives vote on Thursday, while the U.S. government’s funding will expire at midnight Thursday, which if not extended, would shut down part of the government Friday. Some anxiety in the market place could surface late this week if it appears the U.S. government could partly shut down.

In other news, European countries and China are experiencing energy shortages that are not expected to be resolved anytime soon. That suggests crude oil and natural gas prices will remain elevated for some time to come. That’s a bullish underlying element for much of the raw commodity sector.