Gold trades flat ahead of the European open

September 21, 2021

London (Sept 21)  Gold is flat this morning after recovering from the lows of $1742.29/oz the yellow metal trades at $1762.69/oz this morning. Silver has risen 0.35% this is despite a negative close yesterday. Looking at the other commodities, copper is down -0.11% while spot WTI trades 0.85% higher just slightly above $71/bbl.

Japan was playing catch-up after a market closure on Monday and traded -2.17% lower overnight. The ASX in Australia rose 0.35% after Monday's rout. China, South Korea, and Taiwanese markets were closed. Futures are indicating a positive cash open in Europe.

In FX markets, USD/CAD was the biggest mover overnight dropping -0.58%. The rest of the commodities currencies performed well as AUD and NZD both rose against the greenback. Bitcoin is currently -0.18% lower trading at $42,982.

Main news stories from overnight:

The RBA said the central scenario is conditions for rate rise will not be met until 2024 (latest meeting minutes). They added the outbreak of the delta variant had delayed, but not derailed, the recovery.

RBNZ Hawkesby says the policy committee is more confident on employment & inflation.

ECB's Villeroy said that the recent rise in inflation is temporary and he has no doubt that inflation will fall below 2% by 2023.

U.K.'s Kwarteng (business secretary) Considering state loans for energy firms that take on customers from bust energy firms.

Trudeau says the election result means he has a clear mandate to get Canada through the pandemic.

Honda says domestic production to be at 40% of capacity in August - September due to the recent chip shortage.

Pelosi pushing forward urges 'decisive action' on passing spending legislation.

EU foreign policy head says there will be an Iran nuke deal meeting on the sidelines of UNGA. France's Le Drian says time is running out for a potential agreement on the Iran nuke deal.

Erdogan Says Turkish Government Is ‘At War’ with Cryptocurrencies.

Australian PM Morrison says it is not easy to get a trade agreement with the EU.

New Zealand Q3 consumer confidence 102.7 (prior 107.1).

Looking ahead to the rest of the session highlights include the Riksbank rate decision, U.S. housing starts, and building permits. We could also hear from ECB's de Guindos.


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