The oil price looks optimistic. What are the reasons?
Gold grows in Asia as weaker greenback aids buying
On Monday, gold prices soared moderately in Asia because market participants noted the weaker greenback as key bank chiefs in Wyoming dodged policy discussions as well as the impact of Hurricane Harvey on the American surge outlook was being considered.
December delivery gold futures rallied 0.14% being worth $1,299.66 a troy ounce.
Friday’s American jobs report for August is closely monitored this week to figure out how it’s going to impact on the path of Fed policy. Market participants will also be monitoring a revised outcome of American second quarter surge.
UK financial markets are unavailable on Monday.
The previous week, gold concluded higher in a volatile trading session on Friday, thus reversing earlier dips because the American dollar dipped after Fed Chair Janet Yellen's remarks at Jackson Hole didn’t specially address monetary policy.
By the way, a weaker greenback traditionally makes the dollar-denominated metal more affordable for foreign buyers.
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.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.