The oil price looks optimistic. What are the reasons?
Gold soars in Asia as China gets back from week-long break
On Monday, gold leapt in Asia, with China getting back after a week-long break, thus bringing some heft to the global market even as South Korea, Taiwan and Japan are still unavailable for holidays.
December delivery gold futures rallied 0.88% being worth $1,286.13 a troy ounce in New York.
This week on Wednesday, the Fed minutes is going to be in focus for fresh clues on the timing of the next American rate lift. Additionally, Friday’s American reports on inflation as well as retail sales will closely watched too.
Besides this, financial markets will also be monitoring a speech by ECB head Mario Draghi for further indications on when the EU’s major financial institution will drift away from its ultra-easy monetary policy.
The previous week on Friday, the precious commodity rebounded from two month minimums because fresh worries over tensions with North Korea put pressure on the greenback and spurred safe haven demand for gold.
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!