The oil price looks optimistic. What are the reasons?
Gold dives in Asia as market waits for Fed minutes
On Wednesday, gold eased in Asia ahead of minutes from the major US bank due later in the day. The highly anticipated report is believed to demonstrate a mostly hawkish stance on the necessity for a December rate lift and into next year.
December delivery gold futures tumbled 0.27% trading at $1,290.1 a troy ounce.
Overnight, gold rallied for the second day in a row underpinned by ongoing dollar weakness. Additionally, everlasting political tensions between America and North Korea raised market sentiment.
Gold’s quite bullish start to the trading week kept unrolling because safe-haven demand was still elevated amid everlasting geopolitical uncertainty on the Korean Peninsula. Meanwhile, dollar weakness backed an uptick in demand for the number one precious commodity.
Gains in the yellow precious metal were capped after the Catalan government Carles Puigdemont told he was eager to postpone any formal declaration of independence, thus relieving geopolitical uncertainty in the region.
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.