Gold and silver both move lower heading into the European open

London(Jan 27)  Gold fell just over -1.50% after the FOMC meeting and press conference last night and this morning the yellow metal moved another -0.33% lower. Silver also struggled and dropped another -1.46% overnight. In the rest of the commodities complex, copper is -0.46% in the red, and spot WTI has fallen -0.39%. 

It has been a heavy risk-off session overnight. The Nikkei 225 (-3.11%), ASX (-1.77%), and Shanghai Composite (-1.78%) all took a tumble as the market is pricing in more rate hikes and possibly a bigger hike than once thought in March. Futures in Europe are pointing to a lower cash open.

In FX markets, the dollar index strengthened overnight rising 0.24%. The biggest mover was NZD/USD which fell 0.65%. In the crypto space, BTC/USD is -1.68% lower overnight and trades at $36,277.

News from overnight:

Article about the latest developments from the FOMC (Click Here)

U.S. State Dept says Nord Stream 2 will not move forward if Russia invades Ukraine.

U.K. car production in 2021 fell to its lowest level since 1956.

South Korean government minister says will act to stabilize market if needed.

North Korea fires unidentified projectile toward the East Sea.

German Economy Minister Habeck says more needs to be done to protect the gas supply.

New Zealand Q4 2021 CPI 1.4% q/q ( expected 1.3%).

Switzerland's December trade balance CHF 3.69 billion vs CHF 6.16 billion prior.

Germany February GfK consumer confidence -6.7 vs -7.8 expected.

China Industrial Profits for December 2021: 4.2% y/y (vs. prior 9.00%).

Australia's Westpac leading indicator for December 0% m/m (prior +0.12%).

Looking ahead to the rest of the session highlights include the SARB rate decision, U.S. durable goods data, U.S. GDP, PCE price index, and earnings continue. 

KitcoNews