(Kitco News) – Gold and silver are trading marginally higher leading into the European cash open on the first trading day of the week. The yellow metal has moved above the psychological $1700/oz level, while silver trades at $25.38/oz.
Risk sentiment in the Asia-Pac area was mixed overnight. The Nikkei 225 fell 0.42%, Shanghai Composite dropped 2.30% and bucking the trend the ASX closed 0.43% higher.
In FX markets, the greenback was firmer against most of the major counterparts but it was once again the AUD that held firm. AUD/USD trades just above flat while the worst performer is NZD/USD which trade 0.27% lower.
Once again Brent and WTI have pushed higher with the latter trading above 1% in the black but copper is lagging behind 1.76% in the red. In general, the softs are performing well in the commodities markets.
In terms of news, the biggest headline over the weekend came from the US. The Senate has passed the $1.9trl deal and it will now be passed through to the house to vote. It was a close vote and only just passed by 50-49. House Majority Leader Steny Hoyer said it will be taken up in his chamber on Tuesday.
Sticking with the US, President Joe Biden is keen to sign direct stimulus checks. It has been said that he has a target of within 2 weeks to deliver this round of stimulus.
We also had some news from China, as the state planner said the basis of China’s economic recovery is not solid yet. This has slightly different from some of the rhetoric which came out last week, but nevertheless shows some caution.
As we see interest rates rise in the money markets, the eurodollar curve has now fully priced in an FOMC interest rate hike in December 2022. Leading into the EU session 10-year yields stand at 1.60%.
In oil markets, we could be seeing some strength in WTI and Brent as Houthi rebels attacked a Saudi oil yard in Ras Tanura which is an Aramco facility in Dhahran.
Looking ahead to the rest of the session highlights include comments from BoE’s Bailey and much later in the day Japanese GDP.
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Read More:Gold flirts with the $1700 level ahead of the EU open
2021-03-08 07:56:00