Gold and silver edge higher leading into the EU open
(Kitco News) - Heading into the European cash open gold and silver are looking positive. The yellow metal is training at $1695/oz 0.73% higher and silver has managed to stay above $25/oz and trade 1.31% in the black.
After inheriting a mixed close from Wall Street (Dow closed as fresh record highs), bourses in the Asia Pac area were mixed too. The Nikkei 225 (0.99%) and ASX (0.47%) both moved higher and the Shanghai Composite fell 1.82%.
In the FX markets, the USD underperformed overnight with GBP the strongest currency in the G6. GBP/USD trades 0.36% higher at 1.3872 heading into the EU session. Both copper (-1.50%) and spot WTI (-0.14%) are lower despite the weakness in the greenback.
This morning we have heard from Bank of France's Villeroy. He said the economic recession is behind us and in 2021 French economic growth should be at least 5%.
Oil fell overnight despite the rumour that Saudi air defences engaging missiles to the west of Medina, over the Red Sea.
Sticking with oil markets, Libya’s NOC head stated targeting raising oil production to 1.4Mln B/D by year end.
In China, the state funds reported as the (intervention) buyers of stocks on the plunge. State funds act as an intervention group when China stocks fall quickly.
Also from China, we heard that Passenger Car Sales Hit 1.19 Mln Units In Feb, Up 368% Y/Y.
The CME raised RBOB maintenance margins by 11% to $5000 per contract.
After the weekend announcement that the stimulus bill had passed through the Senate, House Speaker Pelosi stated passage of Biden's $1.9tln package could be Wednesday, not Tuesday.
We also heard from Treasury Secretary Yellen overnight who said "we have tools to deal with that" when talking about inflation.
Looking ahead to the rest of the session highlights include EU GDP, EIA short term energy outlook and comments from BoE's Haldane, RBA's Lowe and Fed's Kaplan.