Gold and silver moved marginally lower leading into the EU open

London (Mar 16)  Gold and silver trade marginally lower leading into the EU session this morning. The yellow metal is around 0.19% lower at $1727.50oz and silver trades at $26/oz, -0.62% lower.

The risk tone was pretty positive overnight as the Nikkei 225 (0.52%), ASX (0.80%) and Shanghai Composite (0.78%) all closed in positive territory. Futures in Europe are pointing towards a positive open.

In FX markets, the dollar reigned supreme once again trading higher against all of its major counterparts. The Yen was the second-best performer as USD/JPY only manages to move 0.06% higher overnight.

It is pretty much a sea of red in other commodities. Copper moved just over 1% lower and spot WTI is slightly better off falling 0.77%.

BOE's Bailey has spoken again this morning and he stated that the BOE will continue bond purchases in 2021. He added he sees a 12% fall in UK Q1 GDP as compared to 2019 Down 4% as compared to 2020. Bailey projects UK inflation will remain below the 2% threshold but will initially flare in the short-term due to support measures.

Sticking with central bankers, BOJ's Kuroda said there is no need to change YCC framework and he added asset prices are not part of BOJ's policy target.

It was reported overnight that the Biden administration will not improve relations with Beijing until China stops its economic coercion of Australia.

On the stimulus front, Japanese finance minister Aso says Cabinet has approved cash handouts. This comes after the US approved cash payouts to its citizens.

As we await an important EU report (EMA) on the AstraZeneca vaccine this morning, there were reports that 3 people in Germany have died due to blood clots after the AstraZeneca vaccine. This news comes after the Netherlands becomes the latest nation to take a pause on using the vaccine.

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