Last week, US President Donald Trump expressed his disappointment to China for selling crude oil to North Korea. This problem was revealed after South Korea reported that its satellite captured images of China’s ships transferring crude oil to North Korea’s vessels. President Trump revealed there would be no friendly solution to solve the North Korean issues.
Meanwhile, tensions between United States and North Korea are also increasing due to North Korean nuclear program that continues to contradict with the UN resolutions. North Korea continues to test its missiles that are considered an invitation of War by United States.
Last week US economic data that was released mostly negative. The negative data can be seen from US’s Richmond Fed Manufacturing Index for the month of December was decreased to 20, US CB Consumer Confidence for the month of December was decreased by 5,05%, US Pending Home Sales MoM for the month of November was decreased by 3,30% and US Continuing Jobless Claims for the month of December was increased by 0,36%.
European Political Conditions
Brexit and Catalonian issue still on mind, dampening the European political conditions. Another parliamentary debates for Brexit will be scheduled on 16 and 17 January. Meanwhile, the pro-independence party had won the Catalonian snap election. These 2 European issue may affected the investor’s risk appetite for safe-haven gold.
US Dollar and Stocks Performance
At the end of 2017, the USD and Stocks, traded unattractively, with USD index fell to a 3-month low after the US Congress averted the government shutdown, while Dow Jones stagnated near record highs. Many market-mover data will be released this week (such as, U.S. Nonfarm Payroll and U.S. ISM service & manufacturing index), which could move the USD and resulting volatility to the gold price.