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Gold and silver are once again under pressure leading into the EU session. In the yellow metal, the stubborn consolidation low of $1848.84 is still holding but it seems vulnerable to a downside break. Silver also has a support level at a technical trend line but also the $24 psychological level is holding up the price this morning.
Late yesterday and overnight much of the talk has been over the feud between the US treasury and the Federal Reserve. US treasury secretary Mnuchin asked Jerome Powell to return funding for several Fed lending programs that rely on Treasury’s backing. Within minutes Powell and Co. issued their own statement urging that “the full suite” of facilities be kept in place. Recently the Fed has been asking Capitol Hill for help in supporting the economy but for one reason or another, the fiscal support just has not come.
In the backdrop of rising US COVID-19 cases and deaths, Pfizer is expected to file FDA application for coronavirus vaccine on Friday. Elsewhere, the World Health Organization has recommended against using Gilead Sciences’s remdesivir to treat hospitalized patients. There has been a positive coronavirus story overnight as UK heath secretary Hancock said there are encouraging signs that virus cases are starting to flatten in the UK.
Sticking with the UK and we are getting closer and closer to the Brexit deadline with no real resolution. All the talk of contingency plans has dampened the mood in the sterling rally. There are bound to be more Brexit headlines in the session as EU ambassadors are set to be briefed on latest Brexit updates this morning.
The sentiment leading into the EU open is mixed the Nikkei 225 (-0.42%) and ASX (-0.12%) both closed lower but the Shanghai Composite had a decent session closing 0.44% in the black. Base metals are mostly higher with only tin remaining under flat. Lead, platinum, copper and zinc are all treading above 1% higher in early trade.
Looking ahead to the rest of the session highlight include Canadian retail sales and comments from ECB President Lagarde, FOMC Member Kaplan and German Buba President Weidmann.
By Rajan Dhall
For Kitco News
