Gold, silver see steady price action ahead of Powell, round 2

(Kitco News) - Gold and silver prices are trading near steady in early U.S. dealings Thursday. The marketplace awaits Federal Reserve Chairman Jerome Powell’s testimony to a Senate committee, after he leaned easy on monetary policy when speaking to a House of Representatives panel on Wednesday. August gold futures were last up $1.40 at $1,826.40 and September Comex silver was last up $0.044 at $26.315 an ounce.

Global stock markets were mixed to weaker overnight. The U.S. stock indexes are pointed toward mixed openings when the New York day session begins. The market place is digesting Powell’s testimony Wednesday. He leaned dovish on U.S. monetary policy by saying the Fed is still a ways off on tapering its bond-buying program (quantitative easing). He also said the U.S. central bank still believes rising inflation is only transitory. Focus today will be on his answers to lawmakers’ questions after he released a statement on Wednesday, before speaking to the House panel.

In overnight news, China’s economic growth pace slowed in the second quarter, at up 7.9%, year-on-year. That number is still strong by all standards but does hint that China’s strong economic rebound from the pandemic is leveling off. China’s GDP was up 18.3% in the first quarter. China also reported its industrial production rose a higher-than-expected 8.3% in June.