Gold and silver prices are marginally lower following yesterday's gains

May 4, 2021

London (May 4)  After having a great session yesterday gold has retraced slightly overnight. On Monday the precious metal climbed +1.35% and leading into the European session now has pared around -0.28% of the move. Silver (-0.33%) has also moved slightly lower and trades at $26.74/oz.

Overnight Japanese and Chinese markets were both closed but the ASX in Australia closed +0.56% higher. There was also some positivity in India and South Korea as the Nifty (0.27%) and Kospi (+0.64%) also performed well. 

In FX markets, the dollar index rose +0.24% and the biggest mover was NZD/USD which fell -0.44%. In the rest of the commodities complex, copper fell half a percent and spot WTI lost -0.17% in value. Lastly, in the crypto space, BTC/USD suffered a setback falling -1.83%. 

Looking at the headlines overnight, the RBA left rates and QE unchanged. At its July meeting, the RBA is to consider whether to retain the April 2024 bond as the target bond for the 3-year yield target or to shift to the next maturity, the November 2024 bond. It will also consider future bond purchases following the completion of the second $100 billion of QE purchases.

There are said to be 5 pilot programs to launch to test the potential uses of a US central bank digital currency. 

South Korean y/y CPI in April has hit its highest since August of 2017. 2.3% vs 2.2% expected. 

The U.K. has announced a preliminary "trade deal" with India; circa 1bn GBP. The U.K. is looking to organize trade deals since the departure from the EU.

The Pfizer COVID-19 vaccine to be authorized for ages 12 - 15 in the US next week.

Fed's Williams - says that markets seem to understand Fed's rate guidance. A long way to go on the economy. Yesterday Fed Chair Powell noted that the economy has brightened and is making progress but the economy is not out of the woods yet. 

Looking ahead to the rest of the session highlights include U.K. manufacturing PMI, U.S. & Canadian trade balance data, U.S. factory orders, weekly API's and comments from Fed's Daly.v


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