Gold holds above $2015/oz ahead of the European open

LONDON (Mar 8)  Gold climbed just over 1% overnight to cement its position above $2000/oz. Silver also pushed higher by 1.36% to break $26/oz. In the rest of the commodities complex, copper pushed 3.14% higher and spot WTI also rose 2.09%. 

Indices in the Asia Pac area once again fell. The Nikkei 225 (-1.71%), ASX (-0.83%) and the Shanghai Composite (-2.35%) all dropped overnight. Futures in Europe are also pointing towards a negative cash open.

In FX markets, AUD/USD was the biggest mover falling 0.32% but EUR/USD rose 0.20% too off its recent lows. In the crypto space,  BTC/USD traded 1% higher and hit $38,400.

News from overnight:

Ukraine said that talks with Russia led to small positive developments but there was no ceasefire or truce. 

U.K. media reports the EU plans to slash Russian gas imports by two-thirds in twelve months.

Japan bans oil refining equipment exports to Russia.

Venezuela's President Maduro says talks with the U.S. on oil were polite and constructive.

U.S. Senator Schumer says Biden is looking closely at banning imports of Russian oil.

BoJ Kuroda says cost-push inflation without rising wages won't see inflation target sustained. He added, "Japan's economy has not yet fully recovered from the pandemic".

BoJ official warns must keep an eye on Japanese firms' funding.

Russia has warned that oil prices could surge to $300 a barrel.

U.S. President Biden to sign an executive order on cryptocurrencies this week.

Germany January industrial production +2.7% vs +0.5% m/m expected.

Japan January leading indicator index 103.7 vs 104.8 prior.

Japan real wages +0.4% y/y in January.

Australian weekly consumer confidence rises to 101.1 from 99.2 the previous week.

Looking ahead to the rest of the session highlights include EZ GDP, comments from RBA's Lowe, and an EIA update (oil).

KITCO