Mild upside price corrections in gold, silver Wednesday

(Kitco News) - Gold and silver prices are modestly higher in early U.S. trading Wednesday, on tepid upside bounces after the strong selling pressure seen Tuesday. A higher U.S. dollar index this week is a negative outside market force working against the metals. October gold futures were last up $4.00 at $1,800.30. December Comex silver was last up $0.042 at $24.415 an ounce.

Global stock markets were mostly down in overnight trading. The U.S. stock indexes are pointed to modestly lower openings when the New York day session begins. Risk aversion is a bit keener this week, as traders and investors are more worried about global economic growth prospects amid the Delta variant of the coronavirus that continues to spread in many major economies. Last Friday’s weak U.S. jobs report has supported the aforementioned notions and also thrown a scare into the stock market bulls.

Economic data highlights the rest of this week include scheduled speeches today by U.S. Federal Reserve officials John Williams, president of the New York Fed, and Dallas Fed President Robert Kaplan. On Thursday the regular monetary policy meeting of the European Central Bank occurs. No changes in ECB interest rate policy are expected, but traders will scrutinize any language regarding cutting back on the ECB’s bond-buying program (quantitative easing).