Gold and silver move strongly lower ahead of the European open

LONDON (July 21)   Gold (-0.33%) and silver (-0.40%) are once again trading lower ahead of the European open. In the rest of the commodities complex, copper (-0.51%) and spot WTI (-0.71%) are both trading in the red as commodities sentiment suffers. 

Risk sentiment was mixed overnight as the Nikkei 225 (0.44%) and ASX (0.52%) moved higher but the Shanghai Composite (-0.69%) struggled. Futures in Europe are indicating a positive cash open.

In FX markets, the biggest mover overnight was EUR/USD which rose 0.39%. In the crypto space, BTC/USD has pulled back to $22,862.

News from overnight:

There have been reports that Italian leader Mario Draghi intends to resign.

BoJ left its monetary policy unchanged overnight, as widely expected.

Gas deliveries reportedly to have resumed via Nord Stream 1 pipeline.

China's vice-premier Sun Chunlan says the latest Covid-19 control is not about relaxing rules.

Japanese media reporting that Tokyo will hike its COVID medical alert to the highest level.

BoC's Macklem says inflation will probably remain above 7% for the rest of 2022. He also added that inflation is painfully too high.

Australian Prime Minister advises the RBA not to 'overreach' on interest rate rises.

Japan trade data for June: Exports +4.0% m/m and imports +3.6% m/m.

Looking ahead to the rest of the session highlights include the ECB, CBRT and SARB policy announcements, U.S. initial jobless claims, and earnings continue.

KITCO