Gold is trading flat heading into the European open

LONDON (July 12)  Heading into the European open gold is trading flat and silver (-0.33%) is trading close to $19.00/oz. In the rest of the commodities complex, copper (-0.60%) and spot WTI (-1.33%) are both trading in the red. 

Risk sentiment was generally weak overnight after the negative Wall Street handover. The Nikkei 225 (-1.77%) and Shanghai Composite (-0.87%) both fell while the  ASX (0.06%) managed to keep its head above water. 

In FX markets the focus has been on EUR/USD moving lower to parity. The dollar index has moved another 0.15% higher overnight. In the crypto space, BTC/USD has moved below $20K once again.

News from overnight:

Japan finance minister Suzuki expressed concern to Yellen about the rapid yen weakening.

World Health Organization (WHO) has identified a new “stealth omicron” strain.

Wugang city in China to be locked down after COVID cases rise.

IEA head Birol says the worst of the energy crisis has not yet been seen.

White House Press Secretary Jean-Pierre said that the U.S. CPI data is expected to be "highly elevated" citing gas prices. 

U.K. Barclaycard consumer spending up 6.2% y/y (utility spending surges nearly 40%).

Japan June PPI 9.2% y/y (expected 8.8%) & 0.7% m/m (expected 0.5%).

Australia business confidence 1 (prior 6).

Looking ahead to the rest of the session highlights include German ZEW, OPEC MOMR, comments from Fed's Barkin, BoE's Bailey, and Cunliffe. 

KITCO