Gold Prices Under Pressure Amid Bearish External Market Forces

Credit: Kitco News

On Monday, gold prices experienced a modest decline while silver prices rose in early U.S. trading. The pressure on gold slowed from bearish factors in outside markets, including a slightly stronger U.S. dollar index and weaker crude oil prices. Additionally, U.S. stock indexes near record highs dampened the appeal of safe-haven assets like gold and silver.

Asian and European stock markets showed mixed performance overnight, with China closed for the Lunar New Year holiday. The Year of the Dragon in China has spurred increased gold jewellery sales, driven by expectations of a 30% rise this year. U.S. stock index futures are set to open mixed, while the U.S. dollar index is slightly firmer. Crude oil prices are weaker, and the yield on the 10-year U.S. Treasury note is stable.

U.S. economic data scheduled for release includes the monthly Treasury budget statement, with consumer price index data expected on Tuesday.