Gold price holding steady ahead of EU session
(Kitco News) -Once again gold (0.29%) managed to tread water overnight holding above the support level at $1848.84 per ounce. The level still looks vulnerable for a break but at the moment bulls are holding off after Monday's heavy decline. Silver has not been as firm as the precious metal trades -0.26% lower leading into the EU open. The sentiment was mixed overnight after the US public holiday. Japan's Nikkei traded 0.68% higher while the ASX dropped nearly half a percent and the Shanghai Composite fell -0.11%.
In terms of news, the OPEC group are reportedly looking to extend current output cuts for another 3-6 months. Adding to this, Saudi Arabia's Salman says the nation is still, working to guarantee the stability of oil supplies. Oil prices didn't really react too much to the latest news, holding at $41.46 per barrel.
Early in the EU session, we have had the UK Q3 preliminary GDP numbers which came in at +15.5% vs +15.8% q/q expected. GBP was generally under pressure yesterday as there was a report released saying it would be tough to reach a Brexit deal by the 15th November 2020 deadline but there was confirmation the talks would be extended. The GDP news coupled with the Brexit news has sent GBP/USD 0.33% lower this morning.
In the US election saga according to reports, there seems to be no sign of fraud in Georgia vote. This is another blow to the current US President (Trump) and one more step to a smoother handover for President-elect Joe Biden.
Today highlights include the IEA monthly report (oil), EU economic bulletin, UK business investment numbers, South African gold and mining production, EU industrial production, US CPI, US jobless claims, DoE's (oil), and earnings from Disney, Siemens, Burberry, Deutsche Telekom and Merck KGaA.
The speaker slate is also looking busy with ECB's Lagarde, Schnabel, Mersch, Panetta, de Guindos, BoE Gov Bailey, German Buba Mauderer, BoC Gov Council Member Wilkins, Fed's Evans and Williams all due to speak.