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After closing 0.39% higher last week gold kicks of the week flat. Overnight the yellow metal gapped lower to trade at $1767.20 but has since recovered to start the European session at $1786.31/oz. Silver is 0.20% higher at $26.50/oz and had no such problems at the open. In the rest of the commodities complex, copper has moved 1.59% higher and spot WTI hangs high at the lofty level of $75.22/bbl.
Risk sentiment in the Asia Pac area was mixed overnight as the Nikkei 225 closed -0.64% in the red but the ASX (0.09%) kept its head above water. The Shanghai Composite is currently 0.16% higher. Futures in Europe are pointing to a negative open.
In the FX markets, all of the major was relatively subdued. The dollar index trades 0.03% higher and this biggest mover was USD/CHF which rose 0.20%. In the crypto space, BTC/USD fell -2.72% to trade at $34,323.
Looking at the news from the weekend and overnight, a ransomware attack affected 200 companies in the U.S. and President Biden said if he found out Russia was responsible America would retaliate.
Risk appetite in China was affected by the latest crackdown on the tech sector. Ride-hailing app Didi was removed from "app stores" due to safety concerns.
China Caixin/Markit PMI for June Services 50.3 (vs. expected 55.7) Composite 50.6 (vs. prior 53.8). New Zealand - ANZ Commodity Price index for June: 0.8% m/m (prior +1.3%).
Chinese President Xi is said to have a call with German Chancellor Merkel and French President Macron
Bank of Japan Governor Kuroda once again reiterated the BoJ won't hesitate to ease further if necessary.
Saudi Arabia's energy minister says to UAE he wants "compromise and rationality" on OPEC oil deal. The UAE rejected a proposal to extend the deal and increase production and it seeks a review of baseline production levels.
ECB's Schnabel says an overshoot of inflation is necessary and proportionate.
China's largest steel-making city Tangshan has begun implementing a 30% output cut. The reduction is said to be in place for the rest of the year.
Chile's Codelco copper mine production rose 5.8% to 152.55 tonnes in May. BHP's Escondida mine production (May) fell 9.2% to 84,800 tonnes. Lastly, Chile's Collahuasi copper mine production fell 3.7% to 57,900 in May.
ECB's Knot flags phase-out of coronavirus support beginning March 2022. Knot then added he is wary of the potential for accelerating inflation.
Looking ahead to the rest of the session highlights include composite and services PM's from the major nations and comments from ECB's Lagarde, Enria, de Guindos and Buba's Buch. Remember the U.S. could be quiet as the nation is off for Independence Day.
By Rajan Dhall
For Kitco News
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