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Gold and silver edge lower heading into the European open

January 18, 2022

London (Jan 18) As U.S. fixed income yields rose overnight the USD strengthened and this sent gold (-0.24%) and silver (-0.18%) lower. In the rest of the commodities complex, copper trades -0.22% in the red while spot WTI bucked the trend to push 1.57% higher.

Risk sentiment was also poor overnight, the Nikkei 225 (0.27%) and ASX (-0.11%) closed lower but the Shanghai Composite rose 0.80%). Leading into the European open index futures are indicating a weak cash open. 

In FX markers the biggest mover was USD/JPY which rose 0.28%. In the crypto space, BTC/USD fell half a percent to trade at $42,011.

News from overnight:

China's NDRC said the challenges facing China's economy are not small.

PBOC deputy governor says will keep yuan exchange rate basically stable.

BOJ leaves main monetary policy tools unchanged (as expected).

BOJ's Kuroda: Current weak yen is not bad for Japanese economy. He added that the BoJ will ease monetary policy without hesitation if needed.

US 10 year Treasury yield hits a two year high.

UK December jobless claims change -43.3k vs -49.8k prior.

Japan Industrial Production for November (final) 7.0%.

Australia weekly consumer confidence 97.9 (prior 106.0).

New Zealand Quarterly Survey of Business Opinion for Q4 2021, business confidence headline -28% (prior -11%).

Looking ahead to the rest of the session highlights include German ZEW and earnings from some major U.S. banks including Goldman Sachs.


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