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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 US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
Follow the BOE monetary policy and rate statements on August 6 at 14:00 MT time…