Gold and silver head higher leading into the EU open

December 8, 2020

London (Dec 8)  Gold has continued its move higher in the Asian session leading into the EU open. The yellow metal now trades 0.25% higher at $1867 per ounce and silver (0.69%) has also been dragged higher to trade at $24.60. After the weak handover from the US, indices in the Asia-Pac area are also mixed. The Nikkei 225 closed 0.30% lower, the Shanghai Composite (-0.19%) is also down but the ASX (0.19%) is trading in the black.

In terms of news, the last 24 hours have been dominated by Brexit headlines. UK PM Johnson is set to travel to Brussels today to have an in-person meeting with the EU Commission President von der Leyen. According to reports, the three same issues are still outstanding and these are fishing rights, competition rules and how a deal would be enforced.

In the US the house will conduct a vote on a 1-week continuing resolution this week to provide lawmakers and officials more time to work on a government spending and coronavirus relief bill. The rhetoric as seems more positive of late so the market seems more hopeful that a fiscal stimulus deal can be reached. Sticking with the US, California has been put on lockdown once again as cases continue to skyrocket. The measure has been put into place as hospital occupancy levels reached 85%.

There was some Japanese data overnight. Q3 final GDP annualized for the quarter came in at +22.9% slightly printing above the consensus reading of +21.4%. Japanese October household spending also increased +1.9% y/y but this was slightly shy of the +2.8% expected.

In the metals complex, nickel (0.31%) and tin (0.22%) are higher leading into the open but copper (-0.44%), zinc (-0.01%), aluminium (-0.24%) and lead (-0.34%) are all red heading into the open.

Looking ahead to the session the main highlights include German ZEW data, EU GDP, the EIA short term energy outlook and US labor cost activity.


Silver Phoenix Twitter                 Silver Phoenix on Facebook