Gold and silver edge higher leading into the European open

Gold and silver are trading higher after both mtals had a good Asian session. The yellow metal is 0.20% up trading at $1906/oz while silver trades at $27.94/oz. In the rest of the commodities complex, copper has moved 0.14% in the black along with spot WTI which trades 0.27% higher.

The risk sentiment was pretty poor as the Nikkei 225 fell -0.99% and the ASX dropped -0.25% but the Shanghai Composite (0.14%) bucked the trend to stay positive.

In FX markets, most of the pairs traded in tight ranges and AUD/USD was the main movers rising 0.15%. BTC/USD is down 2.37% trading at $34,834.

Looking at the news from over the weekend, RBNZ's Hawkesby said the market is getting too far ahead on rate hikes, remember these are conditional.

China official PMIs for May show that manufacturing hit 51.0 (estimate was 51.1). Anything above 50 shows the sector is still in expansionary territory. The non-manufacturing PMI reading for May reached 55.2 vs previous 54.9.

Japan Industrial Production for April +2.5% m/m (expected +3.9%).

Chinese think-tank says while US tariffs on China are likely to remain in place a middle ground might be found

The UK is abandoning COVID-19 vaccine passport plans. Previously this was going to be a legal requirement for entering a large gathering event.

WSJ on Biden's infrastructure discussions extending into June. Biden administration says talks over infrastructure would need to show a "clear direction" toward agreement by the time Congress returns from recess on June 7 signaling that Democrats might be preparing to go it alone.

On the coronavirus front, Vietnam has reportedly found a new COVID-19 variant, combines UK and Indian strains.

The China regulator says will further crackdown on market manipulation. Mainly focusing on the commodities markets.

New Zealand says it is supporting Australia in the trade dispute with China.

Looking ahead to the rest of the session markets could be quiet as the U.S. and U.K. are both off for a public holiday. Elsewhere we are due to get German CPI and comments from German Buba Vice President Buch.

 

By Rajan Dhall

For Kitco News

Kinesis Money the cheapest place to buy/sell Gold and Silver with Free secure storage

David