The oil price looks optimistic. What are the reasons?
Gold gains in Asia as China Caixin PMI goes up
On Friday, gold surged in Asia because a positive reading on manufacturing in China backed market sentiment regionally that world's number two economy was still on track.
December delivery gold futures surged 0.17% in New York being worth $1,324.40 a troy ounce.
In August, the Caixin manufacturing PMI leapt to 51.6, surpassing a 50.9 reading expected, as data disclosed on Friday, displaying the fastest tempo of new orders for three years.
Overnight, gold ascended because the evergreen buck dropped after subdued inflation data curbed hopes for a rate lift later in 2017, while renewed geopolitical tensions raised sentiment on the precious commodity.
Gold resumed its ascend reacting to a two-day consolidation because data revealed that consumer spending suddenly fell short of expectations. At the same time inflation grew at its slowest tempo in almost two years, thus curbing investor expectation that the Fed will raise its benchmark rate 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.