The oil price looks optimistic. What are the reasons?
Gold jumps in Asia as NKorea edges back on Guam threat
On Tuesday, gold grew in Asia because North Korea backed away from threats to launch missiles at the US territory Guam, while the evergreen buck demonstrated a moderate revival from recent weakness.
December delivery gold futures ascended 0.75% in New York being worth $1,280.66 a troy ounce.
Overnight, the precious commodity retreated from two-month maximums because risk appetite got back after tensions relieved between American and North Korea, after comments from American officials downplaying the probability of war on the Korean peninsula.
Gold prices declined from two-month maximums because market participants appreciated comments from US Defense Secretary Jim Mattis as well as Secretary of State Rex Tillerson both downplaying the risk of a fierce war conflict on the Korean peninsula.
However, losses in the number one precious commodity were limited because market sentiment on tighter monetary policy was still subdued, reacting to data on Friday disclosing the slowdown in inflation kept unrolling in July.
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!