Gold bounces back before the EU open after Trump cancels stimulus talks

During the Asian session, gold bounced back after the Donald Trump-inspired losses from late in the US session. The US president took to Twitter to announce he would not accept the stimulus deal offered by the Democrats which was said to be in the region of $2.4 trillion. The Republicans were looking for a deal around the $1.6 trillion mark. This morning ahead of the UK opening bell the price of the yellow metal trades around 0.66% higher at $1890 per ounce still below the psychological $1900 level. 

Silver has also retraced around 50% or so from the losses seen last night and starts the EU session above the $23 per ounce level again. Platinum and copper outperform in the metals space rising 1.70% and 1.24% respectively. 

Stock indices in Asia were mixed as the Nikkei 225 (-0.05%) traded just under flat but the ASX pushed 1.25% higher and the Hang Seng rose just under 1%. In FX markets the Australian dollar was the clear winner overnight, while the Japanese yen dropped off slightly. EUR/USD trades 0.18% higher and GBP/USD 0.24% in the black. 

During the EU session today there are some key data releases as the market will get the latest German industrial production numbers and hear from ECB President Lagarde. In the US session, the main event will be the latest FOMC minutes but before that, the market will receive the latest Canadian Ivey PMI numbers for September. 

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