The oil price looks optimistic. What are the reasons?
Gold adds in Asia ahead of PMI outcome for demand trends
On Monday, gold rallied in Asia as market participants eyed demand prospects in China along with July’s figures from official manufacturing ad PMI estimates.
August delivery gold futures added 0.10% in New York, reaching $1,269.61 a troy ounce. For the previous week the leading precious commodity has gained 1.08%, thus demonstrating its third consecutive weekly revenue.
PMI is supposed to demonstrate a level of 51.6, which is a sag from June’s 51.7, with an outcome of 54.9 for the services PMI in the previous month.
The previous week, on Friday, gold grew to one-and-a-half month maximums because sluggish inflation data tempered hopes that the Fed will increase interest rates again in 2017, thus backing demand for the precious commodity.
The greenback sank broadly after wage surge and inflation were still tepid for the three months to June. It was partly compensated by the report telling that American economic surge managed to accelerate during the second quarter.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.