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(Kitco News) – World stock markets were mostly lower Tuesday. U.S. stock indexes are also pointed toward lower openings when the New York day session begins. U.S. markets were closed for a holiday on Monday. There are fresh geopolitical concerns regarding Brexit.
Gold prices are sharply higher and hit a two-month high Tuesday. Worries about the U.K. leaving the European Union have resurfaced. British Prime Minister Theresa May gives a speech on the matter today. Her speech reportedly will state the U.K. wants completely out of the EU.
Donald Trump will be inaugurated as U.S. president on Friday, and that's also adding some uncertainty to the marketplace. Trump's stated ambitious economic growth plans have so far lacked specifics, which is worrisome to many market watchers.
A weaker U.S. dollar index Tuesday is also working in favor of the gold market bulls. The other key "outside market" on Tuesday morning sees Nymex crude oil prices trading firmer on bullish remarks from Saudi Arabia's oil minister, who said that by mid-year the OPEC oil-production cuts will rebalance the world supply and demand situation for oil. There remain stiff technical chart resistance layers that lie just above the crude oil market.
In other overnight news, the German government auction a two-year note (Schatz) a record average low yield of minus 0.75%. The record low German note yield underscores the keener uncertainty in the European marketplace at present.
U.S. economic data due for release Tuesday includes the Empire State manufacturing survey. The World Economic Forum in Davos, Switzerland also takes place starting today.
By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org
Follow Jim Wyckoff @jimwyckoff for breaking market news.