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Why are Gold Prices Spiking? | The Mesh Report

Why are Gold Prices Spiking?

The Gold Enthusiast May 10, 2021 Comments Off on Why are Gold Prices Spiking?

Gold and silver prices are higher in early morning U.S. trading Monday and near their multi-week highs scored late last week. The metals are supported by a slumping U.S. dollar index that hit a 2.5-month low overnight. The near-term technical postures for both metals are also bullish, which continues to invite the shorter-term futures traders on board the long sides of those markets. June gold futures were last up $9.50 at $1,840.60 and July Comex silver was last up $0.363 at $27.84 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins and at or near their recent record highs.

The marketplace is still reverberating from the surprising U.S. jobs report for April, released last Friday, that showed a paltry non-farm payrolls rise of 266,000. Forecasts were for a 1 million rise and compares to a rise of 916,000 in March. It was one of the biggest misses from expectations in over 20 years. The U.S. dollar index is reeling from the report. The jobs report has at least temporarily thrown cold water on notions the Federal Reserve may be forced to raise interest rates much sooner than many expected and that the U.S. economy could be running in high gear by the end of the year.

Traders and investors are watching developments regarding the cyberattack on the U.S. Colonial Pipeline company that has shut the pipeline system down and halted much of the gasoline distribution on the East Coast.

The other key outside market today sees Nymex crude oil prices firmer and trading around $65.25 a barrel. Meantime, the yield on the benchmark 10-year U.S. Treasury note is presently fetching around 1.595%.

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