Another all-time high has juts been reached by the famous crypto asset. What next? $100,000?
Gold rebounds modestly in Asia on recent profit-taking
On Wednesday, gold rebounded in Asia because market participants saw recent dips on a stasis in tensions on the Korean peninsula. They just saw a chance to buy. Another factor is that the Indian festival season gets closer.
December delivery gold futures rallied 0.33% hitting $1,337.04 a troy ounce in New York.
Overnight, the number one commodity declined below break-even. It’s because easing US-North Korea tensions powered demand for riskier assets bringing global equities to record maximums for a second straight day.
The relief soar continued for a second straight day, thus decreasing demand for safe-haven gold because market participants simply shrugged off new threats from North Korea after the United Nations dared to impose a fresh bunch of sanctions, limiting the isolated country’s access to crude imports, while restricting textile exports.
Also suppressing gold prices was a steep surge in American treasury yields ahead of inflation reports due on Wednesday that could impact the Fed’s interest rate verdict slated for September 20.
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OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.