(Kitco News) – Gold is trading flat this morning leading into the European session open, the yellow metal did seem to reject downside levels during yesterday’s session at $1762.65/oz. Silver is around 0.71% higher and is back above the $26/oz pivot level it seems to be oscillating around.
Risk sentiment was positive overnight as the Nikkei 225 (0.21%), ASX (0.25%) and Shanghai Composite (0.37%) all closed higher. It was interesting as it followed a pretty negative closer over in the US. The Fed’s dovish tone has been cited for the reason for the positive sentiment overnight.
Overnight the dollar index traded flat and the main mover was GBP/USD which only traded 0.15% higher as most major FX pairs traded within their ranges. Copper was up another 0.92% and spot WTI also gained 0.82%.
On the news front, Germany’s financial regulator says cryptocurrency exchange Binance may have violated securities rules.
With inflation running rampant at the moment, data showed Australian Q1 export prices surged 11.2% q/q.
In the U.S., in President Biden’s first speech to congress, he said “We are in a competition with China”. The President also called on Congress to pass the $15/hr minimum wage deal.
Fed Chair Powell said China’s approach to digital currency would not work in the U.S..
The U.S. is to deliver $100m in supplies to India in the coming days for coronavirus relief
Just a reminder that the Fed left rates unchanged and pushed back on rumours that they were planned to taper QE early. Fed Chair Powell said the recovery remains incomplete but has occurred much quicker than the central bank thought.
Glencore have released a production update, FY production guidance maintained for key commodities. Own source copper output hit 301,200 Tons +2.7% Y/Y.
Looking ahead to the rest of the session highlights include German import price index, German CPI, German employment data, EU service and industrial sentiment, U.S. GDP, U.S. initial jobless claims, U.S. pending home sales and comments from Fed’s Williams and Quarles.