Gold pushes higher ahead of the European open

LONDON (Aug 2)  Gold is trading 0.24% higher overnight but silver is down 0.33%. Elsewhere in the commodities complex, copper has lost 0.56% of its value and spot WTI has risen 0.48%. 

Risk sentiment was pretty weak as the Nikkei 225 (-1.42%) and Shanghai Composite (-2.03%) fell but the ASX managed to trade 0.07% higher. Futures in Europe are indicating it will be a weak open. 

In FX markets, AUD/USD was the biggest mover overnight falling 1.04% after the rate decision. In the crypto space, BTC/USD fell 1.57% to trade at $22,910.

News from overnight:

RBA raises the cash rate by 50 bps to 1.85%, as expected.

Beijing said to ready countermeasures to Pelosi's Taiwan visit, including military actions.

Taiwan premier Su says warmly welcomes visits by any foreign guests.

China bans more than 100 Taiwanese food factories from importing products.

Taiwan Stock Stabilisation Fund says it will activate to intervene in the market if needed.

Several Chinese warplanes fly close to the median line of the Taiwan Strait Tuesday morning.

China's Communist Party leaders say the GDP goal is guidance, not a target.

Unnamed sources say Saudis will push OPEC+ to increase oil production on Wednesday.

Australian data - June Building Permits -0.7% m/m (vs. expected-5.0%).

U.K.July Nationwide house prices +0.1% vs +0.3% m/m expected.

Looking ahead to the rest of the session highlights include Canadian manufacturing PMI, U.S. NY household debt, and comments from Fed's Evans, Mester, and Bullard. Earnings also continue. 

KITCO