Gold price is trading higher ahead of the European open
London (May 7) Gold has pushed another 0.17% higher overnight after an impressive session on Thursday where the yellow metal gained 1.59%. Silver is trading at near enough flat this morning and importantly broke out of the previous wave high to trade at $27.27/oz. In the rest of the commodities complex, copper is trading another 1% higher and spot WTI is 0.33% in the black.
In terms of risk sentiment, markets were pretty mixed overnight. The Nikkei 225 (0.09%) and ASX (0.27%) moved higher while the Shanghai Composite fell 0.60% leading into the European Open.
In FX markets the biggest mover overnight is AUD/USD which fell 0.23%. There was not too much volatility with most of the majors trading within their ranges. Although, USD/CAD does continue to trend in the downward direction. BTC/USD has fallen 0.79% to trade at 56,000 but is well within yesterday's range too.
Looking at the news from overnight, Chinese Caixin PMI's were released. Services printed at 56.3 (prior 54.3), and this meant the composite also improved to reach 54.7 (prior 53.1) for April. Over in Japan, services recorded a reading of 49.5 (prior 48.3) and this made the composite come in at 51.0 (49.9). Australia Services PMI for April printed at 61.0 (prior 58.7).
The CME has lowered margins for gold, silver, platinum. The initial and maintenance performance bonds for gold are said to be falling 10% for gold and 9.1% for silver. This is due to take effect at the open today.
US officials say that US Secretary of State Blinken will keep the pressure up on China. The Biden administration is likely to maintain pressure on China by preserving limits on U.S. investments in certain companies.
On the crypto front, Goldman Sachs offers bitcoin derivatives to investors. This is a milestone moment for crypto enthusiasts as it opens up another marketplace to drive prices and flow.
HSBC have downgraded gold to neutral from buy over 3 - 6 month horizon. They said, " the bank does not expect significant capital appreciation over the next 3-6 months, especially with bond yields still elevated.".
Looking ahead to the rest of the session highlights include U.S. NFP, U.K. construction PMI, Canadian employment data, Canadian Ivey PMI and comments from Fed's Barkin and ECB's Lagarde.
KirtcoNews
