Price gains for gold, silver on short covering

Gold and silver futures prices higher in early U.S. trading Monday, on some short covering in the futures markets and perceived bargain hunting in the cash markets, following recent solid losses. Both metals are still oversold on a short-term technical basis and are due for additional corrective bounces. April gold futures were last up $6.00 at $1,792.50 and March Comex silver was last up $0.304 at $22.605 an ounce.

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins. Markets in China and South Korea were closed for a holiday Monday. China’s markets are closed all week for the Lunar New Year holiday. Stock indexes are poised to close out January with solid losses on the month. Inflation worries are high and the Federal Reserve appears behind the curve on controlling it, Covid is still causing global economic problems two years into the pandemic, and Ukraine and Russia remain in a stare-down at their shared border. All of the above are making for reduced trader and investors risk appetite in the marketplace.

In overnight news, there was another drone attack against the United Arab Emirates, for the third week in a row. Iran-backed Houthi terrorists were likely responsible. Markets showed no major reactions to the news.

The key outside markets today see crude oil prices firmer and trading around $87.50 a barrel. The U.S. dollar index is weaker today. The U.S. Treasury 10-year note yield is presently fetching 1.789%.