(Kitco News) - Gold and silver futures prices are trading sharply up in early U.S. action Monday, with gold hitting a seven-week high. The metals are being boosted by a very anemic U.S. dollar on the foreign exchange market that saw the dollar index hit a 2.5-year low overnight. Safe-haven demand amid surging Covid-19 cases in the U.S., Europe and other parts of the world are also supporting the precious metals. The specter of rising and possibly problematic price inflation appears to be gaining some steam and boosting many raw commodity markets today. February gold futures were last up $40.90 at $1,935.70 and March Comex silver was last up $1.053 at $27.46 an ounce.
Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings and record highs when the New York day session begins. Trader and investor risk appetite remains upbeat on this first trading day of the new year. The marketplace continues to look over the horizon at what is hoped will be a better second-half of 2021, in both economic and human health terms. The incoming Biden administration is expected to roll out more economic aid to the public and businesses. Also, Americans began receiving their U.S. government stimulus funds late last week, which gives many struggling Americans a bit of a temporary life line.
Commodity markets are also getting a lift early this week in part on some notions the U.S. Senatorial elections in Georgia could see the Democrats win a majority in the Senate, which would make the Senate and the Congress in control of the Democrats. Such would suggest higher spending that would also likely help to stoke price inflation. However, many think it is still unlikely both Democratic senatorial candidates will win in Georgia. The vote is Tuesday.