Gold and silver are once again higher at the EU open
(Kitco News) - Gold and silver are once again trading higher leading into the EU open. In gold, $1859.38 has been a resistance and support level in the past so there could be a reaction around there. Although Silver is trading higher there was a negative close yesterday but it will be interesting to see if the bulls can push the price above $28/oz as they have hold of the market early on.
Sentiment in the Asia-Pac area was good but not as exuberant as it has been in some recent sessions. The Nikkei 225 (0.19%), ASX (0.52%) and Shanghai Composite (1.43%) all closed higher. The only bourses to fall in Asia where both the Nifty and BSE in India.
There was not too much going on in the FX markets but some mild USD weakness. This was positive for base metals however as copper surged another 1.46% with most of the other base metals following suit. Bitcoin stalled at 47,500 after a great run of late.
On the news front, Japanese PM Suga says coronavirus vaccine shots will begin mid-next week. They are slightly behind some of the other major nations but it is a big bit of positive news in the nation that the roll-out is beginning. Sticking with COVID-19 Germany's Merkel is meeting with premiers today to discuss a potential extension to the restrictions in the nation. Berlin's Mayor said, "We cannot afford to relax".
Foreign direct investment (FDI) into China rose 4.6% y/y in January. This is a good sign that the recovery is moving along nicely in the nation. There was also Chinese CPI data for January which came in at -0.3% y/y (vs. expected 0.0%) and PPI 0.3% y/y (vs. expected 0.3%).
South Korea may release 100m bbls of government crude oil supply, as the oil price is holding at higher levels this may not be the only place we see an increase in production.
BOJ Nakamura expresses concerns on how easing policies can impact market function. In a confusing twist, he then went on to say he does not believe that BOJ is supporting stock prices.
Goldman Sachs looking say they are looking for a higher EUR/USD from here in their latest forecast. There has been a dip recently in the FX major but after some consolidation, the bulls have stepped in.
Italy's 5-star movement will not join a Mario Draghi government at any cost. They also deny they are splitting after an online vote was postponed.
Former President Trump's impeachment trial will now move on to a full trial at the Senate after it was passed at the last round of voting (56 vs 44).
Looking ahead to the rest of the session highlights include US CPI, weekly DoE's, US federal budget and comments from Fed's Powell, BoE's Bailey, ECB's Panetta and President Lagarde. There are also a few earning to keep an eye on both pre and post US session.