Gold and silver move lower ahead of the European open

London (Feb 11)  Following comments from U.S. central bankers, gold (-0.14%) and silver (-1.06%) dropped overnight. The rest of the commodities complex struggled too as copper (-1.15%) and spot WTI (-0.57%) both struggled. 

Overnight Japanese markets were closed but the ASX (-0.98%) and Shanghai Composite (-0.66%) both moved lower. Futures in Europe are pointing towards a negative open. 

In FX markets, the USD performed well. The biggest mover overnight was AUD/USD which fell 0.54%. In the crypto space, BTC/USD fell 0.50% to trade at $43,284.

Headlines from overnight:

Fed's Bullard favors a 100bps interest rate increase by July 1st and 50bps in March. 

Fed's Barkin says he would have to be convinced of a 'screaming need' for a 50bp hike. Barkin added he is awaiting the data by the time we get to March and the US economy will pass pre-covid in Q1 2022.

ECB President Lagarde says hiking rates would not solve current problems.

RBA Gov Lowe says if the economy tracks our forecasts rate hike plausible in 2022.

RBA Gov Lowe says there is a big divergence between the Bank and market expectations.

RBA Gov Lowe says it is OK to run the risk of above 3% inflation.

Honda to suspend a production line at Canada plant due to protestors.

US State Department repeats its advice for US citizens to leave Ukraine now.

U.K. December GDP -0.2% vs -0.6% m/m expected.

U.K. Q4 preliminary GDP +1.0% vs +1.1% q/q expected.

Germany January final CPI +4.9% vs +4.9% y/y prelim.

New Zealand January Retail card spending +3.0% m/m (vs. expected 0.6%).

Looking ahead to the rest of the session highlights include U.S. University of Michigan data, IEA report, and comments from ECB's Elderson. 

KitcoNews