x
Gold is starting the session lower on Thursday following six straight sessions of gains. The yellow metal is just hovering around the $1800/oz psychological zone. Silver has fallen -0.85% and trades at just under $26/oz but the wave low on the daily chart looks vulnerable for a downside break. Elsewhere in the commodities complex, copper is -0.19% in the red but the current price action looks very sideways. Spot WTI is now -0.42% lower and is still retracing from lofty levels.
In the risk markets, only the ASX (0.20%) managed to take the lead from the U.S. overnight. The Nikkei 225 (-0.88%) and Shanghai Composite (-0.70%) both lost ground. Futures markets are indicating a negative cash open in Europe this morning.
In FX markets, commodities currencies have been hit pretty hard overnight. USD/CAD trades 0.44% higher while AUD/USD (-0.56%) and NZD/USD (-0.62%) suffered pretty heavy losses. BTC/USD is down a minor -1.88% at the moment.
Looking at the news from overnight, PBOC vice governor says that stablecoins may pose risks, challenges to global monetary, payment systems.
RBA Gov. Lowe says QE is likely to be needed in future business cycles, but there are limits.
There have been media reports that Australia's New South Wales reports the biggest daily rise in COVID-19 cases for 2021.
Japan economy minister Nishimura seeking a renewed Tokyo state of emergency due to COVID-19.
China's State Council promises increased support for the real economy, potential RRR cuts.
In yesterday's FOMC minutes the Fed noted it has not yet seen the standard of substantial progress as having been met yet. Some Fed members expect conditions for tapering to be met earlier than had previously been expected.
Sticking with central banks, there have been reports that the ECB is willing to accept an overshoot of its 2% inflation target.
Germany May trade balance €12.6 billion vs €15.4 billion expected.
Switzerland June unemployment rate 2.8% vs 3.1% prior.
Looking ahead to the rest of the session highlights include the ECB minutes, U.S. initial jobless claims, weekly DoE's and comments from German Buba's Wuermeling and ECB's Lagarde.
By Rajan Dhall
For Kitco News
Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage
