Gold and silver move higher leading into the European open
Gold has had another great session overnight breaking out of its consolidation area between $1797.21/oz and $1750.78/oz to the upside. Silver has also followed suit to trade 0.77% higher at $26.63/oz. In the rest of the commodities complex, copper is building on gains seen yesterday to trade 1.29% higher and spot WTI trades at $76.74/bb the highest level since November 2014.
Looking at the risk sentiment from overnight, the ASX (-0.73%) and Shanghai Composite (-0.60%) traded in the red while the Nikkei 225 pushed 0.16% higher. Futures markets in Europe are pointing towards a negative cash open.
In the FX markets, the dollar index fell -0.23% and the biggest mover was once again NZD/USD which trades over 1% higher. In the crypto space, Bitcoin is still in full consolidation mode and trades sideways.
In terms of news,
RBA's Lowe says the bank is not thinking of rate increases in 2023 and brushes aside calls for a rate increase. He added he does not expect the cash rate to be increased until 2024 at the earliest.
Germany May factory orders -3.7% vs +0.9% m/m expected.
RBA leaves cash rate unchanged at 0.10% in July monetary policy decision. The bank retains April 2024 bond as bond yields target. The RBA wants to continue with bond purchases after completion of the program in early September.
NZIER Business Confidence (Q2) 7% vs previous -13%.
Market pricing for an RBNZ November rate hike is above 70%.
The US is urging OPEC+ to find a compromise deal on increasing oil output. Talks spectacularly failed yesterday and the price of oil has risen once again.
The lockdown in Sydney (Australia) appears to have had only a small impact on consumer spending.
In the U.K., Boris Johnson announces that all businesses can open from 19th July as restrictions will be lifted.
Looking ahead to the rest of the session highlights include construction PMI data from Germany & the U.K., German ZEW data, EU retail sales, U.S. services and composite PMI, U.S. ISM non-manufacturing PMI and comments from ECB's Enria and de Guindos.
By Rajan Dhall
For Kitco News
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