Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Wallace Refiners) – Gold (0.39%) and silver (0.27%) are once again higher at the European open. This was also the case on Monday but by the end of the session, the bulls were frustrated at the $1900 per ounce zone. It was a mixed risk tone overnight as the Shanghai Composite moved 0.54% lower but the ASX (0.53%) and Nikkei 225 (2.66%) traded well. The Nikkei 225 managed to move above 27,000 for the first time since 1991.
The major news came from the US overnight as Lower House of the US Congress passed the bill to send out $2000 stimulus cheques. This is a significant improvement on the $600 cited in the original deal. The bill will now head to the Upper House, the Senate, which convenes on Tuesday. At the moment the Leader of the Senate Mitch McConnell has not indicated he will bring the bill on for a vote.
In FX markets the US dollar was once again the main laggard overnight. The dollar basket moved 0.35% lower while the best performer was the pound which traded 0.46% in the black. In the commodities complex, only WTI managed to capitalise on the weaker greenback as the liquid gold moved over 1% higher. Copper trades 0.35% in the red.
There was no real tier-one data overnight and but it seems with a Brexit deal now done and the stimulus deal nearly over the line risk sentiment is positive the indices are moving higher. Gold usually reacts well to stimulus announcements but this time out there no real firm reaction as of yet.
Looking ahead to today’s session highlights include the Brazilian unemployment rate, US redbook data, US S&P/CS HPI, weekly API data and Japanese industrial production.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
