Gold moves higher ahead of the European open
London (Jun 23) Gold and silver are once again trading higher before the European open. During Tuesday's session, gold started the session higher and by the time U.S. traders entered the fray the precious metal hit a low of $1772.48/oz. Silver is trading at $25.86/oz and has slightly recovered from the Tuesday low of $25.69/oz. In the rest of the commodities complex, copper has moved up just over half a percent to build on a two-day winning streak and spot WTI trades 0.29% in the black.
Looking at the risk sentiment from overnight, the Nikkei 225 (-0.03) and ASX (--0.60%) traded lower overnight but the Shanghai Composite bucked the trend to push 0.30% higher. Futures in Europe are pointing toward a mixed open.
In FX markets, the dollar index has moved 0.12% higher overnight and the biggest mover has been NZD/USD (-0.22%) closely followed by USD/JPY (0.21%). In the crypto space, BTC/USD has recovered somewhat after briefly dipping below the $30K support level.
Looking at the news during the Asian session, RBA's Ellis says it's hard to know how long global supply chain bottlenecks will persist.
On the geopolitical front, China says its military is ready to respond to all provocation. This comes as a U.S. navy ship sailed through the Taiwanese strait.
Australian preliminary trade data for May, exports up 11% m/m. Australia Markit preliminary PMI (June) Manufacturing 58.4 (prior 60.4) & Services 56.0 (prior 58.0).
Japan preliminary PMI (June) Manufacturing 51.5 (prior 53.0) & Services 47.2 (prior 46.5).
The Chinese financial press says China should be alert to the risks of a falling yuan. Due to the increase in the price of raw goods and materials the Chinese administration is already on the offensive.
Once again Chinese media reiterated that the NRDC is to investigate commodities prices.
Fed's Daly says the Fed is not even talking about rate hikes. Fed Chair Powell also said the Fed will not raise rates pre-emptively.
Glencore's CEO said that copper supply must rise by 1mln tonnes per year in order to meet supply.
There has been a 5.7 magnitude earthquake off the coast of Peru (big copper mining nation).
KitcoNews
