Marex Spectron Bullion Thoughts

A very dull day on Friday, despite the unemployment figures out of the US, which as usual created some short term volatility but in reality told us little we didn’t already  know.

The Chinese markets re-opened after a week of holiday and both stocks and the local currency slid lower with the PBOC cutting the reserve requirement by 100 basis points. Fear that China is slowing and that further measures may be necessary is keeping the dollar strong and gold under pressure. Italy remains a thorn in the EU commissions side and this will continue to keep the euro weak for the time being. Other than this, the world carries on with eyes on the on-going trade tensions between the US and China foremost in most people’s minds. 

Precious metals continue within their sideways ranges with last week’s gains all pretty much given back. As I have said many times before, there is no trend here, apart from broadly sideways and the dollar is still the key mover.

Today is Columbus Day in the States and although all fx and commodity markets are open, there are no economic figures out and I would suspect the market will remain quiet, although the occasional outbreak of volatility will no doubt occur!!