Gold and silver are once again mixed leading into the EU open

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(Kitco News) – Gold (0.36%) and silver (-0.30%) traded mixed overnight after the risk sentiment carried over from Wall Street into the Asian sessions was very unclear. The Nikkei 225 closed 0.62% lower while the ASX and the Shanghai Composite remained flat. In the FX complex, commodities currencies suffered as USD/CAD pushed higher and AUD and NZD weakened.

The major news from overnight came from the US. Incoming President Joe Biden provided some more details on his stimulus plan. The payments sent out to American will increase to $2000 from £600. There will also be an increase in the minimum wage in the nation to $15 per hour. The total value of the plan is now $1.9trl just shy of the $2trl some had been expecting. 

The market also heard from Fed Chair Powell yesterday. The main highlights explained that the Fed has not tied itself to a mathematical formula when it comes to average inflation and more importantly, the Fed will not raise interest rates to ward off inflation. Lastly, he also said that the Fed would be very transparent when it comes to the tapering of any asset purchases. In the statement, he stated now is not the time to be talking about exiting the ultra-loose monetary policy.

On the COVID-19 front, France will be extending their current lockdown and Germany’s Merkel wants to tighten restrictions in the nation. This all comes as cases in the UK start to fall but the death rate continues to be very high. As you can see, Europe is still very much in the middle of this crisis. 

Looking ahead to today highlights include UK GDP, UK & US industrial and manufacturing production, EU trade balance, US retail sales, US PPI, Michigan consumer sentiment data, comments from ECB’s Enria and earnings from the major US banks. 

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