Gold and silver both trade higher leading into the European open

Gold and silver have moved higher overnight paring some of the losses that were seen during Monda's session. The yellow metal is back at $1817/oz while silver is trading at $24.15/oz. In the rest of the commodities complex, copper is another 0.15% higher and spot WTI has pushed up 0.11%.

Risk sentiment was pretty good overnight as the Nikkei 225 (1.08%), ASX (0.41%) and Shanghai Composite (0.23%) all closed higher. Futures markets in Europe are pointing towards a positive cash open too.

In FX markets, the dollar index has dropped 0.25%. The best performer overnight is NZD/USD which has risen nearly 1%. In the crypto space, BTC/USD is marginally higher (0.20%).

Looking at the news stories from overnight, Chinese manufacturing PMI (Aug) reached 50.1 vs expected 50.2 (prev 50.4).

Australian PM Morrison says will get 0.5m vaccine doses from Singapore.

The Pentagon announces the completion of U.S. withdrawal from Afghanistan.

ECB's Holzmann says expects inflation to fall this year and the next.

More curbs in China as the securities regulator is looking to impose more controls on private equity funds.

Fed's Mester says inflation criteria have not been made yet to support a hike. Mester also added the U.S. employment levels are not yet at full capacity.

Looking ahead to the rest of the session highlights include German employment numbers, EU CPI, Canadian GDP, U.S. CB consumer confidence and comments from Germany's Mauderer and ECB's Lane. ECB members Robert Holzmann and Klaas Knot are among the speakers at a conference in Alpbach, Austria.

 

By Rajan Dhall

For Kitco News

 

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