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Gold bounces back from yesterday's lows leading into the European open

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(Kitco News) - Gold bounced back from the lows of $1795.14/oz seen yesterday to trade at $1817.20/oz leading into the European session. Silver has not recovered in the same fashion as its precious metal counterpart and trades flat at $25.15/oz. In the rest of the commodities complex, after a tough session yesterday, copper has moved 0.69% higher and spot WTI has pushed up a tiny bit after a dramatic -6.80% fall following the OPEC+ decision to increase production.

Risk sentiment was once again poor in the Asia Pac area. The Nikkei 225 (-0.94%), ASX (-0.46%) and Shanghai Composite (-0.11%) all closed lower overnight. Futures in Europe are pointing to a positive cash open this morning.

In the FX markets, the dollar index broke the previous wave high to trade 0.13% higher overnight. The biggest loser was NZD/USD which fell -0.66%. In the crypto space, bitcoin has dipped below $30k again to trade at $29,676 at the start of the session.

Looking at the news from overnight, The PBOC held the 1 and 5-year rates steady today for the 15th month in a row. 1-year 3.85% (as expected) & 5-year 4.65% (as expected).

The New Jersey Attorney General is preparing an order against the bitcoin platform BlockFi.

Japan National Headline CPI for June 2021: 0.2% y/y (vs. expected -0.1%).

The U.S. has formally accused China hackers of a cyberattack on Microsoft.

The U.S. CDC raised the U.K. to its highest risk level and urged Americans not to travel to Britain.

U.S. Senate leader Schumer said he will put forward a motion to vote on the $1.2trl infrastructure bill on Wednesday.

Incoming BoE member Mann said the BoE must not be premature with the tightening of monetary policy.

In Australia, the RBA said they remain committed to maintaining a highly supportive monetary policy and the central bank will not raise the cash rate until inflation is above the 2-3% target range.

U.S. President Biden said temporary price rises (inflation) were expected and it is also expected to be transitory.

Looking ahead to the rest of the session highlights include U.S. building permits and the earnings season continues. Anglo American are a big highlight from the miners.

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