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(Kitco News) – After hanging on the blade, the win for Joe Biden appears to be confirmed (a legitimate win and Trump wins) and spot gold is 0.55% higher. The official date for Biden to enter the White House is set for January 20, 2021 but there could be some delay as the current President seems to remain in his usual defiant mood. Back to market response, Asian stocks traded higher at the beginning of the week. Japan’s Nikkei 225 increased by 2.26% (the highest close since 1991), Australia’s ASX rose 1.75% and China’s Shanghai Composite rose 1.68%. The sentiment seems to be driven by the fact that Biden is able to unravel all Trump has done to protectionism. There have been rumors that he will be easier on China and less likely to trigger tariffs.
In the rest of the metal complex, silver is up 0.70% but failed to break out of the $ 26.02 resistance. This is the previous consolidation low from mid-August to mid-September and appears to be a rather stubborn area. Spot WTI was up more than 2%, while zinc (1.43%), lead (1.34%), and aluminum (0.34%) all traded higher overnight.
On the foreign exchange market, China’s domestic yuan has risen to 6,5789 per dollar (the highest since 2018), after seeing levels above 6.65 last week. In majors, commodity currency has stolen the program. AUD / USD and NZDUSD are trading half a percent higher, while USD / CAD is down 0.32 percent.
It’s been a slow overnight session for primary economic data. Australian building approvals show an impressive but expected increase of 15.4% vs. -2.3% previously. In Japan, the Japan Central Bank’s abstraction notes that easy monetary policy should be avoided early on.
To date and highlights include Germany’s trade balance and comments from ECB’s Lagarde, Bailey’s BoE, ECB’s Mersch, Haldane’s BoE, Fed’s Mester and Harker.
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