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Gold and silver head into the European open marginally lower

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(Kitco News) - Gold and silver have both moved marginally lower heading into the European cash open. Gold looks like it is rejecting the top of the consolidation area on the daily chart near £1833/oz and silver has stalled just ahead of $25/oz. In the rest of the commodities complex, copper is -0.87% lower but spot WTI bucked the trend to jump 0.73% higher. 

Risk sentiment was pretty positive overnight. The Nikkei 225 (0.86%), ASX (0.02%) and Shanghai Composite (1.48%) all closed higher. Conversely, futures in Europe are pointing towards a slightly negative open.

In FX markets, it was all the commodities currencies that suffered overnight. AUD/USD (-0.28%) and NZD/USD (-0.23%) were the worst performers from the major currency pairs. In the crypto space, closed higher yesterday and this morning trades at $52,553.

Looking at the news from overnight, the RBA left its cash rate unchanged at 0.10% in September monetary policy decision. The central banked announced it is to proceed with tapering and that it would extend the period to at least February (prev mid-November).

Chinese Trade Balance (USD) (Aug) 58.34B vs exp 51.05B prev 56.59B.  Exports (YoY) (Aug) 25.6% vs exp 17.1%.

U.K. August Halifax house prices +0.7% vs +0.4% m/m expected. U.K. BRC Sales like-for-like for August +1.5% y/y, total sales +3% y/y

Germany July industrial production +1.0% vs +0.7% m/m expected.

El Salvador buys 200 bitcoins, adopts the crypto as legal tender from 7 September.

Heading into the EU session iron ore futures slumped causing shares in BHP and Fortresucue in Australia to drop. 

Goldman Sachs has downgraded their U.S. GDP forecasts for 2021 (5.7%), but upgraded 2022 (4.6%).

Looking ahead to the rest of the session highlights include German ZEW, EU GDP, and comments from BoE's Saunders. 

 

 

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