(Kitco News) – After falling 0.69% on Monday, gold is starting Tuesday’s EU session in around 0.40% in the red too. The yellow metal is currently trading at $1725oz with the next intraday support at $1721.47oz. Silver is just above flat but once again dipped under the $25/oz psychological level. In the rest of the commodities complex, copper trades just under flat while WTI moved 0.60% in the black.
Risk sentiment in the Asia Pac area was mixed overnight. The Nikkei 225 (0.72%) and ASX (0.04%) closed higher while the Shanghai Composite fell 0.62%.
In the FX markets, the dollar index pushed 0.13% higher with the biggest moving major USD/JPY (0.20%). USD/CHF also gained around the same amount as the safe havens lost ground. Bitcoin also edged closer toward the all-time high of $61,78.45.
In terms of news, BOJ’s Kuroda says the book value of BOJ ETF holdings is around ¥34-35 trillion. He then added easy monetary policy will continue for a long time.
In early economic data, UK February monthly GDP +0.4% vs +0.5% m/m expected. Overnight, China’s March month exports +16.8% m/m and imports +35.2% m/m.
UK Manufacturing Production (MoM) (Feb) 1.3% vs exp 0.5%, UK Industrial Production (MoM) (Feb) 1.0% vs exp 0.5%.
The PBOC adviser says should make a contingency plan to cope with possible Fed policy changes. This comes as yields continue to rise in the US and refinancing rates could increase.
The Canadian government confirms a support package for Air Canada. Over 5.8 bn CAD in financing liquidity access via LEEFF (Large Employer Emergency Financing Facility) is said to be available.
Fed’s Bullard said it is too early to talk about a change in monetary policy but a vaccination rate of 75% would allow the taper debate.
Fed’s Rosengren stated a Fed rate hike at least two years away and he is comfortable with above 2% inflation for a while. Lastly the central banker said unemployment to fall back to pre-pandemic levels over the next couple of years.
Looking ahead to the rest of the session highlights include German ZEW Economic Sentiment, OPEC report, US CPI, weekly oil API data and comments from Fed’s Bostic, Harker, George, Daly and German Bundesbank’s Mauderer.
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