investingLive European markets wrap: Gold, silver rallies into final stretch of the week

Headlines:

• Gold recovers losses on the day, silver looks to seal a break above $50
• The list for Fed Chair candidates has been narrowed down to 5
• ECB’s Dolenc: Monetary policy is in a good place
• ECB’s Kazaks: ECB rate at 2% is appropriate
• ECB’s Escriva: Inflation remains contained
• ECB’s Villeroy says that French economy is holding up
• BOJ governor Ueda set for visit to the US from 14-19 October
• Japan’s Komeito leader Saito reportedly expressed intention to withdraw from coalition
• Japan’s Komeito leader Saito: We cannot agree with LDP on issues involving money, politics
• Reminder: It will be a long weekend in the US

Markets:

• JPY leads, GBP lags on the day
• European equities mixed; S&P 500 futures up 0.1%
• US 10-year yields down 3.9 bps to 4.109%
• Gold up 0.5% to $3,995.25
• WTI crude oil down 1.2% to $60.78
• Bitcoin up 0.3% to $121,513

There weren’t any major headlines in European trading today, with a lack of key economic data releases not helping. But still, precious metals continue to find a way to hog the spotlight again with both gold and silver poised for eight straight weeks of gains now.

After a mild “setback” yesterday, both are seen pushing higher again today with gold rebounding from $3,947 to retest the $4,000 mark while silver is attempting to make clearance above $50. The latter even crossed above $51 earlier in the session before a bout of profit-taking came along, though price is still up over 2% to $50.13 currently.

In the FX space, there wasn’t much for major currencies to work with in general. The dollar is holding steady for the most part, only down slightly against the yen after Komeito party leader, Tetsuo Saito, said that they will withdraw from the governing coalition. That adds a complication to LDP president Sanae Takaichi’s bid to become prime minister.

USD/JPY is down just slightly by 0.2% to 152.67, also cooling off after some verbal intervention by Tokyo officials.

In the equities space, things remain more muted with European indices not really doing all too much and keeping more mixed on the day. The DAX remains lightly changed after posting a record close yesterday, which also came just by the slightest of margins. US futures are seen posting a marginal bounce, so there’s not too much to work with in terms of risk sentiment.

With the US government shutdown still in effect heading into the long weekend, market players continue to be left hanging for the most part and figuring stuff out on their own devices.

The dollar is set to end the week higher but remains vulnerable to any potential softening in US data and the economy, if and when there is evidence of that. And as things stand, the Fed remains set to cut interest rates again at the end of the month.

But this week, it’s all about gold and silver for the most part as the rally continues. Putting the pedal to the mettle metal. 🤘

Have a great weekend, everyone!

This article was written by Justin Low at investinglive.com.