Gold has been impacted by some strength in the greenback as the DXY trades 0.10% higher overnight
Gold and silver are trading mixed this morning with the yellow metal trading 0.29% lower and silver at 0.54% in the black. Gold has been impacted by some strength in the greenback today as the DXY trades 0.10% higher overnight. The US dollar is not up against the major basket of currencies with AUD, NZD and CAD all performing well.
Following a cue from positive close in the US, the Nikkei 225 (1.01%) and Shanghai Composite (0.51%) finished higher. Australia’s ASX however struggled and dropped 0.73% amid weakness in tech, financial, healthcare and property sectors.
The rest of the commodities complex struggled overnight as copper dropped 1.32% and spot West Texas Intermediate (WTI) fell 0.67%.
Late during yesterday’s session, the Fed kept rates and QE unchanged. There was no mention of SLR but the NY Fed RRP facility to $80 billion from $30 billion. Gross Domestic Product (GDP) and inflation forecasts were revised higher.
Overnight, Japanese media reported that the Bank Of Japan (BOJ) will widen its target yield band for 10 year JGBs to plus/minus 0.25%. This could be a reaction to the recent moves in the bond markets.
As the US and China meet in Alaska, US Sec State Blinken says China aggression poses challenge. China state TV says the country will not compromise with the US over sovereignty.
Australia February employment change increased a huge +88.7K against expectations of +30K & the unemployment rate dropped to 5.8% against expectations of 6.3%.
New Zealand GDP for the final quarter of 2020 dropped -1.0% quarter on quarter (q/q) vs. the expected reading of 0.2%.
In the Netherlands, PM Rutte looks likely to be returned for a fourth term but the results are not official yet.
Glencore has said that Mitsubishi is to acquire 30% stake in the Aurukun Bauxite project.
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