Gold is trading flat ahead of the European open

London (Jan 5)  Gold is trading flat this morning but holds its head above the $1800/oz area. Silver has slumped -0.63% to trade at $22.88/oz. In the rest of the commodities complex, both WTI (-0.45%) and copper (-0.57%) struggled overnight. 

Indices were mixed in the Asia Pac area. The Nikkei 225 rose 0.10% while the ASX (-0.32%) and Shanghai Composite (-1.02%) both struggled. Futures in Europe are also mixed ahead of the cash open. 

In FX markets, there was not much movement overnight. EUR/USD rose 0.11% while USD/JPY moved the same amount in the opposite direction. Bitcoin pushed just over 1% higher to reach $46,340 this morning. 

News from overnight:

PBOC set to step up liquidity injection before Lunar New Year holiday according to reports in the state-owned China Securities Journal.

Japan's Sony Group will establish a new electric vehicles company.

Kashkari expects 2 Federal Reserve rate hikes in 2022. 

North Korea fired a projectile that landed outside of the Japanese Exclusive Economic Zone. 

New York Fed researchers say global supply chain pressures may have peaked.

There are some reports that the semiconductor shortage could get worse after a fire broke out in a key factory. 

Australian ANZ Job Advertisements for December -5.5% m/m (prior +9.9%).

Japan December consumer confidence index 39.1 vs 39.2 prior.

Looking ahead to the rest of the session highlights include EU and U.S. services PMI data, US ADP, and FOMC minutes.

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