Gold and silver have a tough start to the week falling during the Asian session
(Kitco News) - It not been the best start to the week for precious metals on the first trading day this week. Gold has moved 0.25% lower, while silver is down nearly 2%. Silver has taken out a key intraday support level at $24.32 and looks destined for lower levels. The next support level could lie at the previous wave low of $23.55 per ounce. Gold is back below the $1900 level and could find some relief at $1882.20 per ounce but the main wave low stands at $$1847.90.
The Nikkei 225 dropped 0.09%, ASX -0.18% and the Shanghai Composite -0.88%. This is also a packed week of central bank rate decisions and the Chinese leaders also meet to lay out an economic plan for the future.
Overnight there has been a report of new COVID-19 outbreak in the North West region of China. The Kashgar, Xinjiang province has reported137 new infections and there are said to be around are 4.75 million residents in the area.
In terms of weekend news from the US, House speaker Pelosi stated that there is still some hope for a stimulus deal before the election. She stated, "I never give up hope. I'm optimistic. We put pen to paper and had been writing the bill based on what we hope will be the outcome, what they said they would get back to us on". In the UK the Brexit talks have been extended into this week to Wednesday. Sticking with the EU, France and Italy still seem to be recording an increase in Coronavirus cases. The two nations are preparing more stringent measures with France reporting a record 45k+ cases on Saturday alone only to be beating on Sunday with an additional 52K reported cases.
Looking ahead to the rest of the session, one of the biggest highlights in the EU comes from Germany as the market gets the latest IFO data. In the US we get the new home sales data for September. On the earnings front, we will hear from SAP, Canon and Hasbro.