Gold sees price gains as U.S. PPI meets expectations, but still hot

(Kitco News) - Gold and silver prices are slightly lower in early U.S. trading Monday, on routine downside corrections after recent gains. The precious metals bulls still have some upside momentum. December gold was last down $2.00 at $1,826.00 and December Comex silver was last down $0.107 at $24.43 an ounce.

The U.S. data point of the day Tuesday is the producer price index report for October, which is seen coming in at up 0.6% from September. The September report showed a rise of 0.5%. A hotter PPI reading is likely to impact several markets, including bonds, metals, currencies and the U.S. stock indexes.

Global stock markets were mixed in overnight trading. The U.S. stock indexes are pointed to mixed openings when the New York day session begins. There remains little risk aversion in the global marketplace at present. Recent positive news on the Covid-19 front—falling infection rates in the U.S. and new, powerful drugs to combat the virus—have contributed to the upbeat marketplace attitudes and are also helping to lift equities markets. For now, traders and investors are pushing aside the growing prospects for rising and even problematic price inflation.