Mild price gains in gold, silver ahead of big central bank week

Gold and silver prices are modestly higher in early U.S. trading Monday. The metals are seeing some support on continued inflation worries. It's a huge week for central banks meetings that will grab the spotlight. February gold was last up $5.50 at $1,790.40 and March Comex silver was last up $0.105 at $23.30 an ounce.

Global stock markets were mostly firmer in overnight trading. U.S. stock indexes are also pointed toward mildly higher openings when the New York day session begins. It's a quieter start to the trading week. However, activity will certainly pick up as the week progresses as all the major central banks hold monetary policy meetings this week. The Federal Reserve's FOMC meeting begins Tuesday morning and ends Wednesday afternoon with a statement and press conference from Fed Chairman Jerome Powell. The FOMC is expected to announce the acceleration of asset purchases tapering on Wednesday as the U.S. faces the hottest inflation in nearly 40 years. For the European Central Bank meeting Thursday, little change in monetary policy is expected.

Risk appetite remains upbeat with just over two weeks before the new year begins. The new Omicron variant of the coronavirus appears to be much less than the worst-case scenario traders and investors were worried about two weeks ago. That has allowed stock markets to rally on bond yields to rise.