Gold and silver trade higher leading into the European open

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(Kitco News) -Gold and silver have moved higher leading into the European open. The yellow metal had a slightly choppy session on Tuesday after oscillating between positive and negative but the precious metal managed to close 0.06% higher. Silver on the other hand took a dive and fell just over 2% after poor U.S. data sent it tumbling. Copper is trading 0.12% lower at $4.54/lb and spot WTI is 0.24% in the black. 

Risk sentiment was poor overnight with the Nikkei 225 (-1.39%), ASX (-0.70%) and Shanghai Composite (-0.63%) all falling. Futures in Europe are pointing towards a positive open. 

In the FX markets, USD/CAD was the biggest mover overnight falling -0.18% while the dollar index trades 0.08% higher. In the crypto space bitcoin trades flat but very close to the  $40k mark. 

Looking at some of the news stories from overnight, UK PM Johnson says a travel corridor for freer movement between UK and US is being considered.

U.K. July Nationwide house prices -0.5% vs +0.6% m/m expected.

German  August GfK consumer confidence -0.3 vs 0.9 expected, German June import price index +1.6% vs +1.6% m/m expected.

Japanese May final leading indicator index 102.6 vs 102.6 prelim.

Australian PM Morrison says support payments for workers impacted by lockdown to increase.

China’s Global Times says the US will fear China’s nuclear threat.

Australia Q2 CPI headline rate 3.8% y/y (vs. expected 3.8%).

Reports in Chinese media that more fiscal support for the economy ‘may’ be coming this quarter. This is in relation to the stock markets falling. 

UK expected to announce vaccinated visitors to be allowed from US & EU, with no quarantine required.

China is considering levies to slow exports of steel, hoping to curb domestic prices (reiteration, we have heard this before).

Looking ahead to the rest of the session highlights include the FOMC rate decision, Canadian CPI, weekly DoE’s and comments from Fed Chair Powell.