Gold pushes higher in Asia leading into the EU open

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(Kitco News) -
Heading into the European market open, gold is 0.35% higher and edged closer to the $1900 per ounce level. It was a bullish session for the yellow metal on Wednesday where the price erased some of the losses seen on Tuesday evening following US President Trump’s announcement to cancel fiscal stimulus negotiations. 

Within Europe, the coronavirus seems to be spiralling out of control again. France and Spain posted record increases in coronavirus cases as new infections in France increased by 18,746. The UK’s case numbers are increasing again but this time around the rate of deaths in comparison to cases seems to be much lower.

The risk theme in the stock markets also flipped during yesterday’s session as indices in the EU, US and Asia closed higher. Overnight during the Asian session, the ASX closed 1.09% higher, Nikkei 225 0.96% in the black and Shanghai Composite closed just under flat.

In FX markets, the Australian dollar performed well, especially against the Japanese yen and US Dollar. The US dollar was one of the main laggards but mostly against EM currencies with USD/MXN trading 0.34% lower. The dollar index has fallen around 0.10% overnight.

The calendar is pretty packed today and data events include, comments from BoE’s Bailey, ECB’s Schnabel, de Guindos, Mersch, BoC’s Macklem, SNB’s Jordan, Fed’s Kaplan and Barkin. On the data front, we get the latest US initial jobless claims and the latest ECB policy statement.  

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