Gold is trading marginally lower leading into the European open

Gold is trading marginally lower leading into the European open

Gold has kicked off the new week on the back foot. The precious metal is trading -0.33% lower but just above the $1800/oz psychological level. Silver is just marginally higher at the time of writing hovering at $25.50/oz. In the rest of the commodities complex, copper is trading close to $4.50/lb around 0.44% in the black and spot WTI has lost -0.75% after a few decent sessions.

Risk sentiment in the Asia Pac area has been positive overnight. The Nikkei 225 (1.82%), ASX (1.34%) and Shanghai Composite (1.88%) all traded higher. European futures are pointing towards a positive open.

In the FX space, the majors all traded within their ranges overnight, the dollar index trades at 92.08. In cryptocurrencies, BTC/USD has dipped just below the psychological $40k mark.

Looking at the news from the weekend and overnight, China Caixin Manufacturing PMI for July 50.3 (prior 51.3).

The China Daily noted that the Chinese government is set to intensify policy support to bolster the nation's economic growth.

Workers at BHP's Escondida mine rejected the company's final wage offer and if no deal is reached within the next 5-10 days strike action could resume once again.

Germany June retail sales +4.2% vs +2.0% m/m expected.

China has set up a $32bn fund to support State-Owned firms.

China has put travel restrictions in place for some areas due to rising new coronavirus cases.

US Infrastructure bill introduced onto Senate floor. The vote is expected to be completed this week.

Japan Jibun Manufacturing PMI for July 53.0 (prelim was 52.2, prior 52.4).

Australia – Markit Manufacturing PMI for July (final): 56.9 (flash was 56.8, prior 58.6). Australia – AiG Manufacturing PMI for July: 60.8 (prior 63.2).

Fed's Brainard says she would like to have the September jobs data at hand to assess improvements in the labor market.

Looking ahead to the rest of the session highlights include manufacturing PMI's from the major nations.

 

By Rajan Dhall

For Kitco News

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