Modest price bounce for gold, on short covering

(Kitco News) - Gold prices are up a bit in early U.S. trading Wednesday, on a corrective rebound after hitting a six-week low Tuesday. Short covering by the shorter-term futures traders is featured. The upside in the safe-haven metals is limited at mid-week, as the marketplace is calmer following Tuesday’s sharp sell off in the U.S. stock market. December gold futures were last up $3.90 at $1,741.30. December Comex silver was last down $0.202 at $22.265 an ounce.

Global stock markets were mixed in overnight trading, with Asian shares mostly weaker and European shares mostly up. The U.S. stock indexes are pointed to higher openings when the New York day session begins, after seeing sharp losses Tuesday. The marketplace appears a bit calmer at mid-week, following early-week risk aversion that was prompted by rising government bond yields and worries about energy shortages in major economies. It also appears financial markets had a bit of a delayed reaction to last week’s FOMC meeting that saw the Federal Reserve lay the groundwork for tapering its monthly bond-buying program that has been in place for quite some time.

President Biden’s infrastructure package is set for a House of Representatives vote on Thursday. Meantime, the U.S. government’s funding will run out at midnight Thursday, which if not extended, would shut down part of the government Friday.