Gold price holds above a key support heading into the EU open

New York (Nov 6)  Only one place to start and that was the big rally in gold prices during Thursday's session. The yellow metal jumped 2.47% and managed to take out the previous wave high and resistance level at $1933.28. The next big level on the daily chart will be at the high from 16th September of $1973.59. Silver also had a decent session and moved just under 6% higher. Silver however did not manage to take out the resistance at the previous consolidation low which stands at $26.02 per ounce.

Its the last day of the week and yet Joe Biden still has not been confirmed as the president of the United States of America. Hopefully, the count will finish in one of the remaining states and the Democrats can have some kind of resolution. Obviously, this does not mean it is the end of this saga as the current President has launched a series of legal challenges against the results. Biden now has 264 votes and is very close to the 270 needed to confirm victory.

There was a report overnight that Russia's Putin is set to retire due to ill health. This has been unconfirmed but must be taken note of. Maybe we could receive more information during the EU market hours.

In the US session, the Federal Reserve also had their latest rate decision. As expected, the rates interest rate remained unchanged at 0.00-0.25% and the Fed affirmed their accommodative stance. Fed Chair Powell also stated that the economic out still remains uncertain and the FOMC discussed asset purchases at this event. He did go on to say he believes fiscal support is still needed. In the December meeting, the market should get more clarity as the Fed will release new economic projections and details of how some changes are set to be made.

Overnight the ASX (0.82%) and Nikkei 225 (0.91%) moved higher while the Shanghai Composite fell 0.24%. In the metals complex Palladium pushed 0.88% in the black, copper is 0.44% higher and aluminium (0.29%) is also positive. In FX markets there was not major movement overnight but NZD has another decent session climbing 0.44% against the greenback.

Today we will get the latest US and Canadian employment figures, Canadian Ivey PMI and the Baker Hughes rig count.

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