Gold and silver trade higher leading into the European open

Gold and silver are trading marginally higher as we lead into the European session this morning. The yellow metal is trading at $1860/oz while silver has moved to reach $27.73/oz. In the rest of the commodities complex, copper trades -0.34% lower after a dismal session on Tuesday and spot WTI is up another 0.27% to trade at levels not seen since October 2018.

After inheriting a weak handover from the U.S. bourses in the Asia Pac area traded mixed overnight. The Nikkei 225 (-0.50%) and Shanghai Composite (-0.91%) both fell while the ASX bucked the trend to move 0.09% higher. European index futures are pointing towards a negative cash open.

In FX markets, there was very little movement overnight once again. NZD/USD was the biggest mover and moved 0.19% higher. In the crypto space, BTC/USD remains above $40k.

Looking at the major headlines from overnight, China said it will release its national reserves of copper, aluminum and zinc. The nation ordered firms to curb their overseas commodities exposure.

The U.S. is considering establishing a permanent naval task force in the Pacific region to counter Chinese strength.

U.K. May CPI +2.1% vs +1.8% y/y expected. Japanese Core Machinery Orders for April +0.6% m/m (expected 2.5%). Japanese trade balance for May -187bn yen (expected Y -77bn).

Now Australia has made a trade deal with the U.K. they are looking to create a free trade deal with the EU according to the Australian trade minister.

The U.S. and EU are said to have agreed on a deal to address the long-term viability of the iron ore and aluminum industries.

Looking ahead to the rest of the session highlights include Chinese retail sales, Chinese industrial production, U.S. building permits, Canadian CPI, weekly DoE's, FOMC rate decision and comments from ECB's de Guindos, Elderson and the Fed members following the decision and projections later.
 

By Rajan Dhall

For Kitco News

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