Precious metal began the week with mixed signals as gold traded steady but silver broke with its sister commodity to increase in value by 1.11%. This was at the close of the Asian markets and going into the start of the European markets. Compare this change to last week, when gold did very well by rising just below 6%. Now, as we go into the election, more volatility could be coming.
The stimulus deal is one of the biggest pieces of news going into this week. Trump’s team requested that Congress approve a coronavirus relief bill without a Democratic agenda mixed in. This bill would allegedly use leftover money from a previous business aid program which is now expired.
The risk consensus in Asia was good at the beginning of the week with only the Nikkei 225 (0.30%) trading under flat. And China’s Shanghai Composite (2.45%) and Australia’s ASX (0.49%) trading well. Although the Chinese bourses was still catching up from the holidays.
The Forex markets are looking very boring and light on much movement at all. Just some small Japanese yen growth. With GBP/NZD being the worst performing couple by trading at 0.35% in the unfortunate red and only the Kiwi dollar outclassing the JPY as EUR/NZD trades at 0.30% lower.
On Monday, traders and investors will be eagerly anticipating comments from BoE Governor Bailey and ECB President Lagarde, de Guindos. But the information we have available right now is very sparse.