Gold Hovers Around $1300 Bulls Have Momentum

Gold Silver Reports (GSR) – European and Asian stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward lower openings when the New York day session begins. There is some risk aversion in the marketplace to start the trading week, which is also benefitting the safe-haven gold and silver markets.

Gold and silver prices are modestly up in early U.S. trading Monday and bulls in both metals have upside momentum on their side. Gold prices hit a seven-month high of $1,303.70 in February Comex futures overnight.

Both gold and silver closed at technically bullish weekly high closes last Friday, which suggests follow-through buying interest early this week. February gold futures were last up $1.50 an ounce at $1,299.60. March Comex silver was up $0.011 at $15.71 an ounce.

The U.S. government is open after being partially shut down for a month. However, the government could shut down again in mid-February if President Trump and the Democrats can’t reach a deal on the U.S. budget.

Traders and investors are glad to be able to scrutinize some more fresh U.S. economic data to help the drive markets prices.

The U.S.-China trade war that has been playing out for months this week finds high-level officials from both countries meeting in Washington, D.C. There is no consensus on any progress that may or may not be made at this week’s talks. Comments from U.S. and Chinese officials have been all over the map recently.