The oil price looks optimistic. What are the reasons?
Gold goes down ahead of Jackson Hole speeches
On Thursday, gold decreased in Asia because market participants geared up for a slate of major bank chiefs at Jackson Hole within the next two days to talk about global monetary policies.
December delivery gold futures declined 0.12% in New York being worth $1,293.20 a troy ounce.
Market participants were still cautious of initiating huge positions in the precious commodity ahead of speeches by ECB Governor Mario Draghi as well as Fed Chair Janet Yellen at the major banking symposium. Apparently, the Jackson Hole conclave is supposed to unveil as for the path of interest rate lifts in America in 2017 as well as unwinding stimulus efforts by key banks worldwide, with a particular emphasis on the ECB.
Ahead of the decisive banking symposium experts have scaled back hopes for further monetary policy tightening.
Overnight, the number one precious commodity grew because American political uncertainty resumed right after Donald Trump issued a threat to ‘close down’ the US government, thus spurring fresh fears that everlasting political uncertainty could further postpone the introduction of tax-reform.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!