It appears the turnaround in gold that started with last week’s ECB stimulus announcement isn’t over yet, in fact, it may be just getting started. After an initial move up from $1,240 to $1,250, gold paused for a few days to digest the news and today, has embarked on another move up, driving up through $1,260 today while silver and platinum also stage rallies indicating broader new interest in precious metals.
The widening impact of new stimulus from the ECB and stimulus in China targeted at rural areas can clearly be seen in currency and commodity trading today. EUR continues to weaken again pulling the pegged DKK and CHF down with it. On the plus side, crude oil is rallying again today with WTI testing $105.00 and Brent retaking $110.00. Copper is stabilizing just above $3.00. Resource currencies continue to attract attention with NZD bouncing back but still choppy ahead of tomorrow’s RBNZ meeting while AUD also rallies again.
Indices are mixed today as there appears to be some backing and filling going on following recent gains. The Dax
is holding just above 10,000 but the Dow and S&P remain stuck below 17,000 and 2,000 respectively.
Economic reports released overnight and this morning include:
China consumer prices 2.5% vs street 2.4% vs previous 1.8%
China producer prices (1.4%) vs street (1.5%)
UK same store sales 0.5% vs street 1.6% vs previous 4.2%
UK industrial production 3 0% vs street 2.8%
UK manufacturing production 4.4% vs street 4.0%
France industrial production (2.0%) as expected
France manufacturing production 0.0% vs street (0.4%)
Norway producer prices 0.7% vs previous (0.6%)
Norway consumer prices 1.8% vs street 1.7%
Greece industrial production (2.2%) vs street (1.4%)
Greece consumer prices (2.0%) vs street (2.2%)
Italy GDP update (0.5%) as expected
Italy industrial production 1.6% vs street 0.4%
Australia NAB business confidence 7 vs previous 6
Australia home loans 0.0% vs street 0.2%
NZ manufacturing volume 0.5% vs previous 5.7%
Economic reports due later today include:
3:00 pm BST UK GDP estimate previous 1.0%
12:00 pm EDT RBA Governor Stevens speaks at Fed symposium