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Gold and silver fall ahead of the EU open

April 9, 2021

London (Apr 9)  Gold and silver have slipped lower overnight with the yellow metal trading -0.44% in the red. Silver has dropped 1% and this comes after a pretty decent session on Thursday but the majority of those gains have now been paired.

After inheriting a positive lead from Wall Street equities in the Asia Pac area traded mixed. The Nikkei 225 (0.20%) managed to close higher but the ASX (-0.05%) and Shanghai Composite (-0.92%) lost some ground. 

In the FX space, the dollar index had a pretty decent session rising 0.20% and commodities currencies suffered the most. AUD/USD (-0.72%) and NZD/USD (-0.65%) were the worst performers overnight. In the rest of the commodities complex, most of the base metals struggled and copper moved nearly 1% lower while spot WTI traded -0.44% in the red. 

On the coronavirus front, Australian PM Morrison says have secured an additional 20m Pfizer vaccines. This comes after Australia's largest population centre paused all AstraZeneca vaccinations.

Portugal are also suspending the use of the AstraZeneca COVID-19 vaccine. 

South Korea to extend its coronavirus social distancing requirements for another 3 weeks. Elsewhere, Japan's coronavirus advisory panel has agreed to extra virus measures for Tokyo.

Looking at the data overnight, Chinese inflation for March hit 0.4% y/y (vs. expected 0.3%) & PPI 4.4% y/y ( vs. expected 3.6%). Australian AiG Services PMI for March 58.7 (prior 55.8).

German Industrial Production (MoM) (Feb) -1.6% vs exp 1.5% prev revised higher to -2.0% from -2.5%.

The U.S. blacklists seven Chinese supercomputing entities over national security concerns.

The Saudi Arabian oil minister expressed his confidence OPEC+ made the right output decision.

CME Group has hiked COMEX copper maintenance margins by 10.9%. This is not the first time this has happened and there is usually a small initial reaction to margin change but the market often evens out.

Last night there were some comments from Fed Chair Powell. He said despite a brighter economic outlook the Fed still needs to support the economy.

Reuters

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