Gold bounces off its overnight lows to trade positive ahead of the European open

June 4, 2021

London (Jun 4)  Gold trades marginally higher leading into the European open. Gold fell 1.95% on Thursday's session but overnight the yellow metal traded as low as $1856.15/oz and is now holding at $1873/oz 0.11% higher. Silver is down -0.39% trading at $27.31/oz. Looking at the rest of the commodities complex, copper is trading half a percent lower while spot WTI has moved just under flat.

Indices in the Asia Pac area were mixed overnight. The ASX (0.49%) and Shanghai Composite (0.05%) closed higher while the Nikkei 225 lost -0.40% of its value. Futures in Europe are pointing toward a negative open.

After a strong performance on Thursday, the dollar index (0.13%) has moved higher overnight to trade at 90.60. The biggest loser was the EUR this time as EUR/USD dropped -0.15%. In the crypto space, BTC/USD has dropped just over 6% to trade at $36,825.

Looking at the news from the Asian session, the Reserve Bank of India kept rates unchanged but announced more QE. (INR1.20T G-SEC acquisition program).

China NPC spokesperson says China is considering lowering stamp duty rates on houses sold.

US President Biden will speak on the May NFP Friday at 1415 GMT. CNBC also reported that Biden is not backing away from the 28% corporation tax idea. Another report from Bloomberg has suggested that the President could be willing to have a minimum 15% rate with some additional add ons.

Sticking with the President, Biden signed an order banning securities trading in 59 companies linked to the Chinese military.

New Zealand Building work done for Q1 2021: +3.7% q/q (expected +3%, prior -1.5%).

Fed's Williams says it is time the Fed should be thinking through its options but now is not the time to take action.

Looking ahead to the rest of the session highlights include construction PMI in Germany & the U.K., EU retail sales, U.S. & Canadian jobs data, Canadian Ivery PMI, U.S. factory orders, U.S. Baker Hughes rig count. We could also hear from ECB's Lagard, Fed's Powell, SNB Chairman Thomas Jordan, RBNZ Gov Orr and German Buba's Mauderer.


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