Modest gold price gains amid weak U.S. dollar

(Kitco News) - Gold futures prices are modestly up in early U.S. trading Monday, boosted a bit by a weaker U.S. dollar index that is hovering near a 2.5-year low. Gains in the yellow metal are being limited by higher U.S. and global equity markets. Silver prices are posting solid gains to start the trading week. February gold futures were last up $3.10 at $1,886.40 and March Comex silver was last up $0.787 at $26.695 an ounce. 

Global stock markets were mostly up overnight. U.S. stock indexes are pointed toward higher openings and new record highs for the S&P 500 and Nasdaq indexes when the New York day session begins. The marketplace has been buoyed by President Trump in a surprise move over the weekend signing the Covid-19 aid bill that the U.S. Congress agreed upon just before Christmas. The bill provides direct payments to Americans and also loans to U.S. businesses.

Traders and investors are also more upbeat as Covid vaccines continued to be rolled out in the U.S. and Europe. Still the enthusiasm is tempered by the pandemic that continues to be out of control in the U.S., Europe and other parts of the world. Some health experts are saying January will be the worst month yet, as far as the human toll. Restrictions on many businesses in many locations remain in place and may get tighter in January.