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BookmarkGold gained in Asia on Friday as investors awaited a potential ICBM test by North Korea on September 9 to mark its founding as a nation, with regional views mixed on the prospect for actual military confrontation.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose 0.56% to $1,358.05 a troy ounce.
China’s trade balance data came in at a surplus of $41.99 billion, narrower than the $48.6 billion expected for August. Imports jumped 13.3%, better than the 10% gain seen, while exports rose 5.5%, compared to a gain of 6.0% expected. Earlier, China reported yuan-denominated exports gained 14.4% on year and rose 6.9% month on month in August for a trade balance surplus of CNY 286 billion.
Overnight, gold prices surged on Thursday on the back of a weaker dollar, following data showing weakness in labor market, but gains were capped as expectations grew that the European Central Bank is moving closer to tightening monetary policy.
Following the European Central Bank’s decision to keep interest rates unchanged, ECB president Mario Draghi said ECB policymakers would likely make a decision on tapering monetary policy in October, but did express concerns over the sharp rise in the euro. Draghi said that the currency’s strength “represents a source of uncertainty which requires monitoring with regard to its implications for the medium term outlook for price stability.”
The sharp rise in the euro came amid a slump in the dollar following data showing initial jobless claims hit a two-year.
Initial jobless claims in the period running from August 27 to September 2 surged by 62,000 to 298,000, reaching the highest level since spring 2015, the Labor Department said Thursday.
Dollar-denominated commodities such as gold are sensitive to moves in the dollar – a dip in the dollar makes gold cheaper for holders of foreign currency, and thus increases demand.
Investing.com
9/8/2017
