Gold moves higher heading into the EU session

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(Kitco News) – Gold (0.83%) and silver (1.60%) are heading higher into the EU session as sentiment in the Asia-Pac area was weak. The Nikkei 225 trades 0.17% lower, ASX is down 0.43% and the Shanghai Composite (-0.06%) traded just under flat. 

Overnight it was reported that gold imports fell to 7,126KG in October from 17, 135KG in September. Although this is a dramatic fall it would be safe to assume imports are to pick up for Q1 2021 for the Chinese Lunar New Year.

London in the UK is moving to the highest tier (their 3) of restrictions in the UK. This could be because case numbers and hospitalizations are rising but some believe it is in anticipation of the 5-day restriction holiday during the Christmas break. If people are forced to meet fewer people before the pause in regulations this could help reduce the number of infections before the break.

Sticking with the UK, Brexit talks have moved on slightly according to some EU officials. The UK refuted these claims but the fact that they are still negotiating is positive for now. The level playing field and fishing rights still remain the two key sticking points. 

In the US overnight, it became official that Joe Biden won the presidential election as the electoral college voted in favour of Biden. Although in most cases this is a formality it seems to be of note in US media. 

The Chinese economic recovery seems to be gathering pace. The November industrial production improved to hit 7% and retail sales also improved to print at 5% vs the prior reading of 4.3%.

Looking ahead to today’s session highlights include UK earnings data, CPI from Italy and France, IEA monthly report, Canadian manufacturing sales, US industrial production and comments from ECB’s Lane. 

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