Make Kitco Your Homepage

Gold is still rangebound leading into the EU open

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold and silver are broadly flat leading into the EU open this morning. It seems that the yellow metal is stuck rangebound and this weeks FOMC rate decision and update could be catalyst for a move. Over in the Asia Pac region, equities traded well with the Nikkei 225 (0.67%), ASX (0.36%) and Shanghai Composite (0.48%) all trading in the black. In the FX markets, commodities currencies outperform with USD/CAD dropping 0.30% and NZD/USD climbing 0.40% confirming the positive risk tone. 

The weekend's news was once again dominated by the COVID-19 pandemic. The UK is now outlining plans to ban people (non-UK nationals) who have come from Brazil and South Africa from entering the UK. The US are doing the same but they will be adding the UK to the list. Another story to keep an eye on is the shortage of vaccines with the like of Pfizer (PFE:NYSE) saying they will ship out fewer vaccines to account for extra doses sent out in each vile of the previous rollout. 

China's Global Times have reported that large-scale tests of digital currency are planned for this year. This has been long in the making but now it seems that the government is ready to make a move. 

In Italy, Prime Minister Conte may look to resign with the aim to form a government with a stronger majority. This story could pick up more traction as the European markets open and more details could be released. 

Weekend comments from Bernie Sanders helped keep the risk tone positive as he said the Democrats will push through the coronavirus relief package through the reconciliation approach. This uses a simple majority with Senator Harris casting the deciding vote. 

The Saudi sovereign wealth fund is said to be doubling its assets in the next five years to $1.07 tln, the plan is to double its assets to around 4 trillion riyals by 2025. Adding to this, the fund is to invest 3 trillion riyals in new sectors over the next 10 year period. 

Index futures are pointing to a positive open at the start of the week and most base metals have traded well overnight with nickel the outperformer up 1.44%.

Looking ahead to the rest of the session highlights include German IFO data and comments from ECB's Panetta, Lagarde, BoE's Bailey and US President Biden.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.