The oil price looks optimistic. What are the reasons?
Gold ascends in Asia with steady NKorea tension
On Friday, gold gained support in Asia because tensions between North Korea and America demonstrate no signs of abating. Moreover, market participants looked ahead to data out of major gold buyer India on foreign exchange reserves for July as well as industrial output for June.
December delivery gold futures added 0.29% in New York, reaching $1,293.79 a troy ounce.
Overnight, the precious commodity leapt to two-month maximums because geopolitical tensions between America and North Korea didn’t relieve, while dismal American economic reports put pressure on the US currency, raising demand for gold.
Risk aversion was still actual for the second day in a row, increasing demand for gold, just a day after North Korea told it was considering a plan to attack Guam, exactly where an American military base is located.
The publication of inflation and initial jobless claims reports failed to compensate the flight to safety. It’s because both reports undershot hopes, driving uncertainty over the Fed’s ability to lift rates later in 2017.
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.