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(Wallace Refiners) – Gold and silver once again are lower heading into the European open. The yellow metal is 0.11% in the red and trades at $1836 per ounce as even more ETF outflows have been noted in recent sessions. Silver seems to have made a new lower high on the daily chart and the next major support level to watch is the previous wave low at $21.89 as a break there might mean losses could accelerate.
After the negative handover from US the indices in the Asia Pac region also struggled. The Nikkei 225 closed 0.23% lower and the ASX also fell 0.67%. The Shanghai Composite in China was the outperformer and traded just above flat.
In terms of news, Brexit continues to dominate the newswires. UK PM Johnson and EU’s von der Layen both agreed that a decision should be made by this Sunday about the future of talks. At the moment the UK feel that the EU is not respecting the sovereignty of the county. Boris continued to say that no other nation would accept someone else being in control of its waters.
The US has come together to pass a stopgap funding bill to avoid a government shutdown. This seems like the only thing they can agree on in Capitol Hill as there are more issues surrounding fiscal stimulus. Mitch McConnel has expressed his frustration about the Democrats rejecting the latest GOP aid proposal.
Keep an eye on events in Europe today as leaders are set to meet in Brussels to discuss further pandemic coordination. They are also set to discuss issues like climate change and security.
Today we look forward to UK GDP, industrial & manufacturing production, ECB rate decision, US initial jobless claims and the latest Federal budget balance. We also get comments from BoC Deputy Governor Beaudry and ECB President Lagarde.
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