Gold moves lower ahead of the European open

LONDON (July 20)  Gold has moved 0.24% lower heading into the European open to trade at $1706/oz. Silver is just under flat. In the rest of the commodities complex, copper is 0.82% higher while spot WTI has fallen 4.31%.

In the risk markets, the sentiment was good overnight. The Nikkei 225 (2.67%), ASX (1.65%), and Shanghai Composite (0.76%) all closed higher. Futures are pointing towards a positive cash open in Europe. 

In FX, markets were flat overnight. NZD/USD was the biggest mover rising 0.35%. BTC/USD continued its winning streak to trade at $23,675.

News from overnight: 

The Chinese PBoC left rates unchanged as expected. Chinese Premier Li Keqiang signaled flexibility on the economic growth rate.

China boycotts mortgage payments spread across at least 301 projects, 91 cities.

China reported more than 1,000 new COVID cases today for the first time since May 20th.

RBA Gov. Lowe says inflation heading as high as 7% and the bank is going to have to increase rates.

There have been reports that a deal could be near between Russia and Ukraine to end a blockade on grain exports.

Also that the Nord Stream 1 gas pipeline out of Russia could restart this week as scheduled.

U.K. June CPI +9.4% vs +9.3% y/y expected.

Germany June PPI +0.6% vs +1.3% m/m expected.

Looking ahead to the rest of the session highlights include Canadian CPI, EZ consumer confidence, U.S. existing home sales, and earnings continue. 

KITCO