The oil price looks optimistic. What are the reasons?
Gold earns in Asia as NKorea tensions drive safe-have demand
On Monday, gold managed to earn in Asia after at the weekend North Korea claimed to have tested its hydrogen bomb, thus powering regional global tension on worries of a military conflict, which could involve South Korea, Japan, China and the United States.
December delivery gold futures rallied 0.74% in New York trading at 1,340.26 a troy ounce. Market participants are closely watching a UN Security Council gathering later on Monday for a fresh set of sanctions on North Korea as well as a probable sterner stance by China, its erstwhile ally.
The previous week, gold was still close to nine-and-a-half-month maximums, shrugging off a rebound in the evergreen buck because a poor nonfarm payrolls report drove demand for the key precious metal.
The precious commodity pared some its revenues, following its move to a nine-and-half-month maximums because traders downplayed the impact dismal job and wage surge in August could have on the Fed’s plans to lift interest rates later in 2017.
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.