(Kitco News) – After a very hectic start to the week, the gold price bounced off the consolidation low of $1850.62 per ounce after falling 5.46% during yesterday’s session. This morning the precious metal trades 1.23% higher after the Pfizer/BioNTech vaccine news provided the catalyst for the dramatic move lower.
Overnight equities continued to move higher in Asia with the Nikkei 225 pushing 0.26% in the black. The ASX (0.66%) also gained but the Chinese bourses didn’t manage to capitalise on the bullishness seen elsewhere. European futures are also painting a mixed picture with Dax futures up 0.63% and FTSE 100 (-0.11%) futures lagging behind. Stay at home stocks are still suffering with the likes of Zoom and Facebook under pressure following vaccine news.
In terms of news overnight, Chinese inflation figures for October came in at 0.5% y/y vs expected 0.8%) and PPI fell 2.1% y/y vs an expected drop of -1.9%. Away from economic data, Eli Lilly’s antibody therapy was granted an emergency-use authorization by U.S. drug regulators for treating Covid-19. Although it has not produced the kind of positive results that the Pfizer drug managed it is still a significant step to reducing hospitalisation rates.
Elsewhere, Europe are set to impose $4 billion worth of tariffs on US goods today. The tariffs will be on Boeing models, which will now have a 15% duty, there will be other charges on goods ranging from spirits to tractors and video games. In China, the Shangai Exchange said it will be launching an international copper contract. The U.K.’s House of Lords rejected government plans to break international law over Brexit, this is a blow to UK Prime Minister Boris Johnson who said he will challenge the legislation. To add to Johnson’s woes the new US President Joe Biden has stated he will not allow a US-UK trade deal if the UK break the Good Friday agreement.
Today traders will be looking out for German ZEW data, the EIA Short-Term Energy Outlook, US JOLT’s job openings for September, weekly oil API data and comments from Fed’s Quarles and Brainard.
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