The oil price looks optimistic. What are the reasons?
In Asia gold drops moderately
On Wednesday, gold slumped modestly in Asia after several days of profits and amid everlasting doubts as for the prospects for the greenback.
August delivery gold futures sank 0.08% hitting $1,240.76 in New York, staying higher than yesterday.
As for copper futures, they nearly didn’t change, sticking to $2.725 a pound, sinking 0.07%.
China unveiled second quarter GDP surge earlier this week, with a profit of 1.7$, which generally fit expectations and a year-on-year soar of 6.9%, which turned to be modestly higher than the anticipated 6.8%. Simultaneously, China posted that industrial output grew 7.6% in June from the previous year, while retails sales gained 11% in June.
A weaker greenback has helped to underpin market sentiment as well as gold prices. Currently, the market is looking towards Thursday and a gathering of the European Central Bank for fresh clues on whether the EU’s major financial institution will drift away from ultra-easy policy.
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.