Gold (XAU/USD) is declining for the second day in a row. The reason of such a dynamic is that investors have turned to stocks.
Gold edges up in Asia on Korea tensions
On Friday, gold soared in Asia because market participants waited for a probable ICBM test by North Korea on September 9, with regional views mixed on the likelihood for further military confrontation.
December delivery gold futures jumped 0.56% in New York being worth $1,358.05 a troy ounce.
China's trade balance leapt to $41.99 billion, although it’s narrower than the supposed $48.6 billion for August.
Overnight, the key precious commodity rallied on the back of a dipping greenback, reacting to data demonstrating weakness in labor market, although revenues were capped as expectations surged that the ECB is currently moving closer to tightening its monetary policy.
The steep ascend in the common currency came amid a tumble in the greenback following data unveiling that initial jobless claims reached a two-year maximum.
From August 27 to September 2 initial jobless claims ascended by 62,000 hitting 298,000, thus demonstrating the highest value since spring 2015.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
Congratulations! Gold has just opened a new era... or, rather, reopened...
Canada will publish the employment change and the unemployment rate on July 10, at 15:30 MT time.