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Gold and silver are mixed heading into the EU open

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(Kitco News) - Leading into the EU open gold (0.21%) and silver (-0.17%) are trading mixed. Risk sentiment overnight was slightly mixed too as the Nikkei 225 (1.04%) and ASX (0.11%) closed higher but the Shanghai Composite fell 0.27%. In the FX space, GBP/USD was the outperformer rising 0.26% and the dollar index fell 0.16%.

On the news front, once again we start with US politics. The House voted to push U.S. Vice-President Mike Pence to oust President Donald Trump from office by enacting the 25th Amendment. The outgoing US President Donald Trump does not have too much time left in office anyway as he is due to leave the White House on 20th January. 

Incoming US President Joe Biden is set to unveil his economic stimulus plan on Thursday. The plan is set to include US$2,000 stimulus checks and an extension of enhanced unemployment insurance.

The US government has issued warnings to EU firms who are conducting business related to the Russian gas pipeline (Nord Stream 2). They have threatened them with sanctions and urged them to exit before it is too late. 

On the COVID front, China reported its largest amount of cases in 5 months overnight. According to the National Health Commission, 115 new confirmed cases had been reported on the mainland. 

On the slate today Japanese PM Suga is set to hold a press conference at 10 am London time following reports that Japan is about to issue a state of emergency regarding the COVID-19 case increase. It seems they are not the only nation struggling at the moment as the government in the Netherlands increase the lockdown by a further three weeks. 

Looking ahead to the rest of the session, highlights include EU industrial production, US CPI, weekly DoE oil inventories, the Fed budget balance and comments from Fed's Clarida, Harker, Brainard, Bullard and ECB's Lagarde

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