Price advances for gold, silver as USDX declines

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(Kitco News)- Gold and silver prices are higher in early U.S. trading Friday, lifted by a sharp overnight drop in the U.S. dollar index. The USDX has come well off its overnight low and that has dropped the two precious metals from their overnight highs. More short covering in the futures markets heading into the weekend is featured in both metals. October gold was last up $11.90 at $1,722.50 and December silver was up $0.138 at $18.58.

Global stock markets were mostly firmer overnight. U.S. stock indexes are pointed toward higher openings when the New York day session begins. The markets have brushed aside, for now, the hawkish tone of the U.S. Federal Reserve that was reinforced by comments from Chairman Powell on Thursday. Also, the European Central Bank on Thursday raise its main interest rate by 0.75%--the largest in over 20 years. Its very likely traders and investors have already factored into markets prices the tighter monetary policies of most of the major central banks of the world.