Once again gold and silver struggle leading into the EU open
London (Jan 28) Gold (-0.27%) and silver (-0.95%) are once again in the red leading into the EU open as price action during the Asia-Pac session has been weak. Gold is nearly at the low point of yesterday's session ($1832.52/ox) and silver is also attacking $24.70/oz.
Following the negative close on Wall Street the Nikkei 225 (-1.53%), ASX (-1,92%) and Shanghai Composite (-1.91%) have all moved lower. The risk-off time all comes despite the Fed reaffirming that they will stick with their current policy stance for quite some time yet. There has been some suggestions that the WallStreetBets Reddit debacle has scared of some of Wall Streets finest.
Sticking with the Reddit board, the group have said they will try and go after the silver market next. They have accused the institutions of holding silver at depressed levels and believe the precious metal should be trading at the $1000/oz level closer to historical ratios in comparison with gold.
On the earnings front, it was a bad day yesterday after the US close. Apple, Facebook and Tesla all reported. Only Apple impress while Telsa and Facebook suffered heavy aftermarket losses.
Back to politics and US Sec State Blinken he will stand against pressure from China. The comments came as he met with Philippine Foreign Minister Teodoro Locsin with the state department saying "Secretary Blinken pledged to stand with Southeast Asian claimants in the face of PRC pressure".
There was nothing really new from the Fed. Asset purchases, rates and policy were left unchanged. The FOMC did note that the pace of economic activity had moderated in recent months.
In FX markets, the greenback is the clear winner once again with AUD/USD suffering the biggest loss down -0.61%. The Canadian dollar and New Zeland dollar have both also underperformed.
Looking ahead to the rest of the session highlights include the World Economic Forum Annual Meetings, EU business climate, US GDP, weekly initial jobless claims, Canadian building permits, US new home sales and comments from ECB's Schnabel and Enria.
KitcoNews
