Gold and silver are mixed heading into the EU open

Gold and silver are once again mixed heading into the European open. Gold has moved -0.27% lower to trade at $1818/oz and silver trades 0.38% in the black at $27.42/oz. Today has the potential to be extra quiet as it is an American public holiday to add to the fact that Chinese traders are still off due to Lunar New Year.

For the markets that are were open, risk sentiment was pretty positive overnight. The Nikkei 225 in Japan closed 1.91% higher and Australia's ASX pushed 0.91% in the right direction. The Nikkei 225 achieved an impressive milestone as the index closed above 30,000 for the first time since August 1990.

In FX markets, the US dollar was trading lower against most of its major counterparts and GBP was the main mover trading 0.30% higher. USD/JPY was the only positive dollar pair rising 0.24%.

In commodities markets, the oil price pushed higher once again as tensions in the middle east provided the catalyst. There were press reports that Saudi-led coalition fighting in Yemen said late on Sunday that it had intercepted and destroyed an explosive-laden drone fired by the Iran-aligned Houthi group toward the kingdom (Saudi state TV).

After some positive readings elsewhere in the world it is now Japan's turn. Japan's economy minister Nishimura says Q4 GDP result point to potential economic recovery. Japan's preliminary GDP for Q4 (SA) came in at 3.0% q/q vs expected 2.4%.

Sticking with economic data, New Zealand's services sector is still in contraction as the latest services PMI print for January hit 47.9 (prior 49.2).

On the COVID-19 front, the UK hit its 15 million vaccine target this weekend and to add to the good news the 7-day average infection rate fell below 100K for the first time in 3 months.

In Italy, former ECB president Mario Draghi as been sworn in as the new leader of the nation. 5SM leader Di Maio will remain foreign minister and former Bank of Italy deputy governor Franco will be the economic minister.

Looking ahead to the rest of the session the highlights include EU industrial production, EU trade balance and Canadian manufacturing sales. Remember this afternoon the US markets will be closed for Presidents day.
 

By Rajan Dhall

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