Gold gathers some upside momentum leading into the EU open
(Kitco News) - Gold (0.77%) and silver (1.21%) have performed well overnight leading into the EU session. The yellow metal looks to have some upside momentum after clearing $1850/oz. The major indices in the Asia-Pac area were mixed. The ASX (0.41%) and Shanghai Composite (0.47%) performed well while Japan's Nikkei 225 dropped -0.38%. Once again the Australian dollar was the outperformer in the FX space moving 0.56% higher.
So today is the day Joe Biden moves into the White House and the scaled-back inauguration ceremony takes place. There have been some media suggestions that the hard stance on China will continue in the new era of American politics. This comes as incoming Secretary of State Blinken said Trump was right on taking a tough stance on China. Late in the US session, there were also some reports that the new president's stimulus program will hit some Republican resistance.
There was some positive news for the metals industry on the travel front. Volkswagen said it expects car market sales in China to exceed 2019 levels. Adding to this, Chinese state media stated that President Xi wants further high-speed rail development in the nation.
Overnight there was some positivity in the tech sector as the Netflix after-market earnings call sent the stock higher (12%) post-market. Although the company missed on its EPS $1.19 vs $1.39 expected, it beat on revenue ($6.64 billion vs $6.626 billion) and said it would no longer need to use external financing for its day to day operations.
There was some news from the ECB, the central bank said it was going to engage in yield curve control to limit the spreads between the strongest and weakest EU economies.
Sticking with the EU, Italian Prime Minister Giuseppe Conte managed to fight another day as he won yet another confidence vote. He will need to win a few more votes in the future for an outright majority that would be required to pass certain key legislations.
Looking ahead to the rest of the session highlights include UK CPI, German PPI, EU CPI, Canadian CPI, BOC rate decision, weekly API oil inventory data and comments from BoE's Bailey and new President Joe Biden.