Silver price outperforms gold leading into the European market open

October 12, 2020

London (Oct 12)  Precious metal starts the week on mixed as gold trades flat but silver pushed 1.11% higher at the Asian close leading into the EU open. Last week gold had a stellar week rising just under 6% and leading into the US election there could be more volatility ahead.

One of the main narratives leading into the week is the US fiscal stimulus saga. The Trump administration were said to have called on Congress to try and approve a watered-down coronavirus relief bill using leftover funds from an expired small business loan program as negotiations on a broader package ran into resistance.

The general risk sentiment in Asia was positive at the start of the week as only the Nikkei 225 (0.30%) traded under flat. Australia’s ASX (0.49%) and China’s Shanghai Composite (2.45%) traded well with the Chinese bourses still catching up from public holidays last week.

There is not too much going on in the FX markets. Just some mild Japanese yen strength. Only Kiwi dollar has outshone the JPY as EUR/NZD trades 0.30% lower and GBP/NZD is the worst performing pair trading 0.35% in the red.

In terms of main events on Monday, traders will be looking out for comments from ECB President Lagarde, de Guindos and BoE Governor Bailey. The data slate is very light at the start of the week.


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