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Gold and silver are trading higher leading into the European open

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(Kitco News) - After a decent session on Monday gold and silver are trading higher following the Asian session. The gold price has pushed 0.13% to trade at $1868.22/oz while silver is just over 1% in the black at $28.47/oz. In the rest of the commodities complex, copper is nearly 1% higher and spot WTI has also edged up 0.24%.

The risk sentiment during the Asia-Pac session has been good as the ASX (0.60%), Nikkei 225 (2.15%) and Shanghai Composite (0.05%) all closed higher. 

In the FX markets, the U.S. dollar had a tough session as the DXY trades 0.24% lower extending to the downside. AUD/USD and NZD/USD both traded well both rising 0.45%. 

In terms of news, Fed's Kaplan said he still expects the first FOMC rate hike could happen in 2022. He also added he sees GDP 6.4% this year, unemployment rate down to 4%.

China are said to be seeking wider sources of iron ore. China's National Development and Reform Commission of the People's Republic of China (NDRC) also said they want to support domestic exploration. 

China says Australia should stop interfering with bilateral trade. This comes after Australia condemned the treatment of Ugiar Muslims in China

US Treasury Secretary Yellen wants businesses to help foot infrastructure bill. US Senator says Republican infrastructure proposal is on track to be sent to President Biden on Tuesday

US coronavirus study shows Pfizer, Moderna vaccines effective against Indian variant.

There was some data from Japan overnight and Q1 GDP (preliminary) printed at -1.3% q/q (SA) (vs. -1.1% expected).

We also had the RBA minutes and the key takeaways were: conditions for rate rise considered unlikely until 2024 at the earliest. There is said to be no rate rise until actual inflation sustainably in 2-3% target band. The board are willing to extend bond buying if needed.

UK Claimant Count Change (Apr) -15.1K vs previous -19.4K

Looking ahead to the rest of the session highlights include EU GDP, U.S. building permits, and comments from ECB's Lagarde, BoE's Baily Broadbent, Ramsden Fed's Bostic, and SNB's Jordan

 

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