Gold and silver head into the European session slightly lower

London (Feb 21)  After an initial move higher at the open gold has fallen 0.37% overnight as risk sentiment turned positive. Silver is around half a percent lower. In the rest of the commodities complex, spot WTI is down 1.16% and copper bucked the trend to trade half a percent higher. 

Indices in the Asia Pac area were mixed overnight. The Nikkei 225 closed 0.78% lower, ASX 0.16% higher and the Shanghai Composite was unchanged. Futures in Europe are indicating a positive cash open. 

In FX markets, the greenback suffered overnight. EUR/USD is trading half a percent higher with the biggest mover AUD/USD (0.61%). In the crypto space, BTC/USD is back below $40k once more after some weekend selling. 

News from the weekend and overnight:

There are reports that Biden and Putin will meet.

Macron and Putin held a second hour-long phone call.

Biden has prepared an initial package of sanctions against Russia.

White House says Biden will discuss Ukraine with G7 leaders on Thursday

China's January new home prices - rise for the first time m/m since September.

China Securities Journal says PBoC has the tools for further stimulus.

Japan Jibun Bank manufacturing PMI (preliminary) PMI for February 52.9 (prior 55.4).

Australian Manufacturing PMI 57.6 (up from 55.1 in January).

Germany January PPI +2.2% vs +1.5% m/m expected.

Looking ahead to the rest of the session highlights include flash PMI's, the Blinken and Lavrov meeting, and EU-U.K. Brexit meeting. The U.S. and Canadian markets are closed due to public holidays. 

KITCO