Modest price pressure on gold as USDX rebounding
Gold and silver prices are weaker in early U.S. trading Monday, as buyers are timid to start the trading week due in part to the recent good rebound in the U.S. dollar index. October gold futures were last down $2.30 at $1,787.60. December Comex silver was last down $0.34 at $23.555 an ounce. Global stock markets were mostly firmer in overnight trading. The U.S. stock indexes are pointed to higher openings when the New York day session begins. The stock markets are seeing bounces early this week after last week's poor performances. In overnight news, North Korea said it fired a tactical test missile that traveled nearly 1,000 miles. That's a reminder to the world that the rogue nation is still on the geopolitical radar screen. Trader attention early this week is on the U.S. consumer price index report for August, set for release Tuesday morning. The CPI is forecast up 0.4% after a rise of 0.5% in July. Year-on-year the CPI is seen up 5.4% in August—the same as July. Said Bloomberg news in a morning email dispatch: "On the raw-materials side, the price pressures are becoming increasingly hard to ignore with aluminum hitting the highest level in 13 years. Oil is back above $70 a barrel this morning. Producers are pushing the higher prices through to consumers as they battle with the increased costs of raw materials, shipping bottlenecks and rising labor expenses." Meantime, President Biden continues to try to push his major spending plan through the Congress but is hitting road-blocks. The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are higher and trading around $70.75 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.334%. U.S. economic data due for release Monday is light and includes the monthly Treasury budget statement.