Gold and silver trade lower leading into the European open

Gold and silver are leading into the first day of the trading week in the red. After closing 1.15% higher last week the yellow metal has lost nearly half a percent to trade at the psychological $1800/oz level once again. Silver has just dipped under the $26./oz mark and the support to watch is holding at $$25.51/oz. In the rest of the commodities complex, copper is down -0.75% and spot WTI is also -0.56% in the red.

Looking at the risk sentiment from overnight, the Nikkei 225 (2.25%), ASX (0.83%) and Shanghai Composite (0.70%) all closed positive leading into the European open (Much of the positive price action could come due to the Chinese RRR rate cut on Friday). Dax and FTSE futures are actually pointing towards a slightly negative open.

In FX markets, the dollar index has moved 0.11% higher and the biggest mover overnight is USD/CAD which trades 0.21% in the black. In general commodities currencies have struggled. Bitcoin is trading marginally higher at $34,341.

Looking at some of the main stories from the weekend and overnight, the Australian regulator APRA says banks must have a plan to deal with negative interest rates by April 2022.

There were reports that noted the China state financial media said that there could be more support for the economy incoming.

ECB head Lagarde says end of PEPP may be followed by a new format of support.

Sticking with the ECB, Schnabel said she does not expect that inflation will get 'excessively high'.

Chinese military confirmed that a U.S. warship unlawfully entered the South China sea.
 

Looking ahead to the rest of the session highlights include comments from Fed's Williams, Kashkari and ECB's de Guindos. There is no real tier one data to look out for.
 

By Rajan Dhall

For Kitco News

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