Once again gold and silver area trading higher leading into the European open. The yellow metal is knocking on the door of $1915/oz while silver is back above $28/oz. Elsewhere in the commodities markets spot WTI is up 1% and copper trades just above flat.

Risk sentiment overnight was mixed. The Nikkei 225 (-0.16%) and ASX (-0.27%) both dropped while the Shanghai Composite rose 0.05%. Eurostoxx futures are pointing to a positive open.

In FX markets, GBP/USD was the biggest mover rising 0.14% at one stage the pair reached a high of 1.4251 a level not seen since April 2018. The dollar index starts the session marginally lower. Bitcoin recovered from its lows during yesterday’s session but today the crypto major trades -0.74% lower at $36,961.

Looking at the news from the Asian session, the Chinese Caixin Manufacturing PMI for May came in at 52.0 beating expectations of 51.9 (previous 51.9). Australia’s Markit Manufacturing PMI for May (final) reached 60.4 (vs. prior 59.7).

The RBA left its cash rate unchanged at 0.10% in June monetary policy decision. The bank said its central scenario is for GDP to grow by 4.75% over this year and 3.50% over 2022. The RBA said it will consider in July whether to retain the April 2024 bond as the target bond for the 3-year yield target or to shift to the next maturity. The board also reiterated they will not move the cash rate until inflation is sustainably between the 2-3% range.

The local government in Tangshan (China) met with representatives from steelmakers and decided to ease capacity restrictions on sintering machines. This will increase the supply of the much-needed commodity. Tangshan is a center of steel production in China.

China has initiated its first lockdown since January Guangdong / Guangzhou has imposed a partial lockdown.

Looking ahead to the rest of the session highlights include manufacturing PMI’s from the major nations, EU CPI, Canadian GDP. We could also hear from Fed’s Quarles, Brainard and BoE’s Bailey.