The oil price looks optimistic. What are the reasons?
In Asia gold holds revenues with North Korea tension setting the overall tone
On Thursday, gold held early profits in Asia, with the market alert caused by the war of words between America and North Korea sparking geopolitical tension in the region.
December delivery gold futures grew 0.14% in New York being worth $1,281.06 a troy ounce.
On Wednesday, the precious commodity spiked to one-week maximums, on the back of an ascend in safe haven demand, right after North Korea shocked financial markets by saying that it’s actually considering a missile attack on the US pacific territory of Guam, thus shrugging off Trump’s earlier warning that any further threats to America are going to be met with fury and fire.
The ascend in gold prices came a day after the precious commodity had reversed a three-day winning streak because market participants appreciated American job openings data, which topped hopes suggesting the American labor market keeps strengthening, increasing the prospect of rate hikes by the Fed later this year.
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.