Gold prices are posting solid gains and hit a three-week high in early U.S. trading Friday, boosted by safe-haven demand as the marketplace is showing a bit of anxiety to end the trading week. February gold was last up $15.40 at $1,813.50 and March Comex silver was last up $0.12 at $22.605 an ounce.
Global stock markets were mostly lower in overnight trading. U.S. stock indexes are pointed toward weaker openings when the New York day session begins. Today is the quarterly triple- witching phenomenon--the simultaneous expiration of stock options, index options and index futures. These days can cause higher volatility. The stock market bulls late this week have quickly pulled in their horns. It seems traders and investors have pivoted after the U.S. stock indexes posted strong gains in the immediate aftermath of the FOMC meeting Wednesday afternoon. Thursday's and Friday's price action in the stock markets suggest traders and investors have realized they are now staring down the double-barrel shotgun of rising interest rates/inflation and a resurging coronavirus that threatens to again crimp global economic growth. It could be that other major central banks moving to tighten their monetary policies or signaling their intent to do so, shortly after the Wednesday FOMC meeting pushed traders and investors into risk-averse postures.
Gold prices surged to a nearly three-week high Friday, above $1,800.00, on safe-haven demand and as traders seek out the metals as an inflation hedge.