Gold moves higher in early EU trade

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(Kitco News) – The gold (0.27%) price has moved higher in early EU trade. This is also followed by some positive risk sentiment as both the EuroStoxx (0.63%) and DAX (1.39%) trade well. Silver is also in the black and trades 2% higher at $26.32 per ounce. 

One of the reasons for the move higher in gold came as outgoing US President Donald Trump signed the COVID 19 relief deal. In a day where the volume could be light news like this could have a big impact on the market as moves can be exaggerated. 

Elsewhere, the AstraZeneca drug for COVID-19 vaccine will be granted UK approval on Monday, Dec 28th; to be rolled out starting Jan 4th according to UK press. Shares in the drugmaker are flat this morning despite the news. 

On the central bank front, the BoJ meeting minutes noted that the bank may not tolerate a rising JPY. Prior to this, Japanese Prime Minister Suga has painted a target on USD/JPY, saying “don’t let it fall under 100”. When referring to the USD/JPY exchange rate. 

In crypto market, BTC/USD hit another all-time high yesterday reaching $28,387. Interestingly the volume in the rally seems to be getting lighter despite the rally. 

On FX markets, EUR/USD is at the top of the majors with USD/CAD the worst-performing currency pair. This supports the risk-on sentiment this morning and the fact there has been a broad vaccine rollout in Europe over the festive period. 

Looking ahead to the rest of the session there is no real tier-one data as the quiet days between Christmas and New-Years day kick in. Tomorrow could be more lively as we get the latest US CB consumer confidence data. 

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