The oil price looks optimistic. What are the reasons?
Gold keeps gaining ground on strong data
On Tuesday, gold kept gaining ground in Asia just a day after China posted strong second quarter GDP, retail sales and industrial output figures for June. Traders also focused on industrial metal demand for housing as well as property development.
August delivery gold futures rallied 0.27%, trading at $1,236.07 in New York, while copper future were intact, sticking to $2.726 a pound.
China posted second quarter GDP surge with a revenue of 1.7%, which matched hopes as well as a year-on-year leap of 6.9%, which came in moderately higher than the forecast 6.8%. Simultaneously, China disclosed that industrial output soared 7.6% from last year in June, while retail sales added 11% in June.
The currency pair AUD/USD hit 0.7823, sliding 0.09%, with China a key trading partner for metal, energy and food commodities. Meanwhile, USD/JPY showed 112.44, declining 0.09% too.
A weaker greenback has helped to shore up sentiment as well as gold prices. Traders will currently focus on Thursday and also a gathering of the ECB for new clues on when the key bank will give up its ultra-easy policy.
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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.