The oil price looks optimistic. What are the reasons?
Gold rallies in Asia on ongoing North Korea test threats
On Wednesday, gold went up as North Korea warned it could conduct another test in the nearer future. Most likely, it’s going to be an ICBM test on September 9 to commemorate its founding anniversary. It would put America and its allies in the position of a response, which could potentially include an attempt to shoot the rocket down.
December delivery gold futures grew 0.12% being worth $1,346.11 a troy ounce.
Overnight, gold ascended reacting to a tumble in the greenback on the back of soaring geopolitical uncertainty as well as dipping hopes that the Fed will raise interest rates for a third time later in 2017.
Gold leapt to near one-year maximums because geopolitical uncertainty was still actual, driving safe-haven demand amid North Korea’s most impressive nuclear test over the weekend.
Contributing to the soar in gold prices were remarks from Fed Governor Lael Brainard urging the number one US financial institution to postpone soaring interest rates until the trend of decreasing inflation improved.
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.