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(Wallace Refiners) – Gold and silver have edged slightly higher leading into the EU sessions. Gold found support last week at $1785.13/oz and this is the level to watch if there is to be any bearishness this week. The silver chart looks slightly more positive as the price is just holding above the middle of the current consolidation area between $21.65 – $30.09 per ounce.
Risk sentiment in the Asia-Pac area was pretty positive overnight. The Nikkei 225 outperformed jumping 2.12% while the ASX (0.59%) and Shanghai Composite (1.03%) also moved in the right direction. Futures in the EU are pointing to a positive open.
In the FX space, the markets look pretty flat. Only USD/CHF moved into double figures for percentage change trading higher by 0.10%. Copper is trading just under flat after a bumper close on Friday that saw the base metal close 2.50% higher.
In terms of news, New Treasury Secretary Yellen says US could reach full employment next year with $1.9T stimulus package. Speaking in an interview with CNBC she said “We have people suffering, particularly low-wage workers and minorities and through absolutely no fault of their own. We have to get them to the other side and make sure this doesn’t take a permanent toll on their lives”.
Sticking with the US, President Joe Biden thinks his bid for a $15 per hour minimum wage will not survive negotiations.
There is said to be a study being published today that confirms the Oxford/AstraZeneca COVID-19 vaccine is not effective against the South African variant of the coronavirus.
The UK may open pubs and restaurants as soon as April if they agree not to sell alcohol. This could happen as a senior government source states that almost all adults in the UK could be vaccinated by the end of May.
UK Chancellor Rishi Sunak may extend the furlough scheme beyond the deadline at his budget announcement on 3rd March. There was also a report that he could tax business that have benefitted from the pandemic such as Amazon.
Looking ahead to the rest of the session highlights include German industrial production and comments from BoE’s Bailey and ECB’s Lagarde.
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