North Korean President Kim Jong Un met Chinese President Xi Jin Ping on Wednesday March 28th, 2018 before the upcoming meeting with South Korean leader and United States President Donald Trump about the denuclearization on the Korean peninsula. North Korea needs security guarantees from China, as one of North Korea’s closest allies. China is willing to provide support for any useful effort in producing a resolution for denuclearization and providing benefits for the protection of peace on the Korean peninsula.
Last week US economic data that was released mostly positive. The positive data can be seen from US’s GDP Price Index for the 4th Quarter of 2017 was increased by 0,20%, US’s PCE Prices for the 4th Quarter of 2017 was increased by 1,20%, US’s Wholesale Inventories MoM for the month of February was increased by 0,10%, US’s PCE Price Index YoY for the month of February was increased by 0,10% and US’s Michigan Inflation Expectations for the month of March was increased by 0,10%.
The Tier-1 U.S. Data
This week, investors around the world will keep their eye on U.S. labour data, which are the Non-Farm Employment Change, the Unemployment Rate, and the Average Hourly Earnings. Although, last week U.S. GDP Growth had blew a positive sentiment to USD, these labour indicators expected to provide a mix sentiment to USD. Will these data halt Gold price downward pressure as U.S. Non-Farm and Unemployment Rate release as expected or to accelerate the bearish sentiment of Gold price?
Easing Sentiment of Potential Nuclear War
As reported, the North Korean Leader had met the Chinese Leader – resulting a very good progress of an upcoming meeting (expected to be held at the end of May) between North Korea and U.S. Leader. Will these positive sentiment last or another negative issue will embark from both countries again and drive the gold price higher?