Gold and silver move higher heading into the EU session
(Kitco News) - After another tough session on Monday and a dismal November gold (0.64%) and silver (1.56%) start December on the front foot. The general risk sentiment during the Asian session was positive as the Nikkei 225 (1.34%), ASX (1.08%) and Shanghai Composite (1.77%) all closed higher. This all comes despite a negative handover from the US bourses. One of the major positive stories from overnight came from China, the latest Caixin Manufacturing PMI (Nov) hit a 10 year high of 54.9 vs expectations of 53.5.
Late in the US session, there were some comments from US Treasury Secretary Mnuchin who urged Congress to repurpose $US455bn in unused CARES funds. He also added that that targeted relief is the most appropriate. Sticking with comments in the US, Fed Chair Powell stated that recent vaccine news is very positive for the medium term.
On the Brexit front, Irish PM said there are options available to complete a Brexit trade deal but UK cabinet member Gove added three sticking points remain. Nevertheless, GBP/USD is trading nearly half a percent higher at 1.3385 this mornning.
There was also the latest RBA interest rate decision overnight, where the central bank kept rates unchanged as expected. The policy of term lending is also unchanged but the RBA stated they are willing to do more if needed and the size of the bond purchasing program will be kept under review.
Base metals all look positive overnight, zinc (0.65%), copper (0.55%), aluminium (0.52%), nickel (0.32%), lead (0.13%) and tin (0.01%).
Looking ahead to today's session highlights include Manufacturing PMI data from Germany, UK, US (ISM), France and Italy, EU CPI, Canadian GDP, API data. There will also be comments from Fed Chair Powell, ECB Lagarde, Chicago Fed President Evans, FOMC Member Daly and FOMC Member Brainard.