Gold, silver see near-steady price action, but bulls have momentum

(Kitco News) - Gold and silver prices are trading not far from unchanged levels in early U.S. trading Tuesday. The metals are pausing after gold prices hit a seven-week high Monday and silver hit a three-week high last Friday. Both markets are in near-term price uptrends and that is inviting new buying interest. June gold futures were last up $1.30 at $1,771.90 and May Comex silver was last up $0.113 at $25.945 an ounce.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. The U.S. indexes are pausing early this week after hitting record highs last week. There is no major U.S. economic data due for release Tuesday and the pace for U.S. data is slow up until Thursday. Focus of equity traders is presently on quarterly earnings reports, which are expected to be mostly upbeat as the U.S. rolls out of its pandemic-inducted economic slowdown.

In another sign that inflation could become problematic in the coming months, or sooner, SP Angel this morning said in an email dispatch: "U.S. ports are breaking new records for imports as shops and online retailers stock up ahead of new consumer splurge. Volumes at the Port of Los Angeles rose nearly 123%, year-on-year, and also up 65% from 2019. Imports have climbed to high levels driven by Biden's ‘go big' stimulus and by consumer exuberance led by the rapid roll out of vaccinations in the U.S." If such a scenario does indeed play out it would be bullish for hard assets like precious metals and real estate, and bearish for paper assets like stocks and bonds.

10-ounce-Gold-Bar by Mark Herpel is licensed under CC BY 2.0

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