Gold price near steady amid competing market forces at mid-week

(Kitco News) -  Gold futures prices are trading not far from unchanged in early U.S. action  Wednesday. A depreciating U.S. dollar on the foreign exchange market that sees the U.S. dollar index near a 2.5-year low is bullish for the precious metals. However, gold and silver bulls are still being squelched by rallying U.S. and global equity markets that see the U.S. stock indexes near record highs. February gold futures were last down $0.50 at $1,882.50 and March Comex silver was last up $0.218 at $26.435 an ounce. 

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings and more record highs when the New York day session begins. Trader and investor risk appetite remains elevated as market participants are opting to look just over the horizon to see what will likely be strong economic recoveries under way as soon as late spring, and choosing to look beyond the Covid-19 pandemic that appears to be at its peak for infections and deaths in the U.S. and which has forced new business and public restrictions that are still hamstringing economic growth. Colorado has reported the first official U.S. case of the new strain of faster-spreading Covid that has hit the U.K.

Trading volumes are likely to start to die down at mid-week, ahead of the New Year’s Day holiday on Friday, when governments and markets are closed.