Gold is narrowly confined at the low end of yesterday’s range. Diminished geopolitical risks are putting modest pressure on the yellow metal, inciting investors to move back into ricks assets. However, a host of other risks underpin and nobody really believes the North Korean situation is anywhere close to being resolved.
U.S. housing starts tumbled 4.8% in July to a 1.155M pace, below expectations of 1.220M, versus a negative revised 1.213M in June. Minutes of the July FOMC meeting come out later today and markets will be looking for any clues about the likelihood of another rate hike this year. It’s pretty much baked into the cake that won’t happen in September, but December remains a toss-up.
The U.S. Air Force conducted training exercises with Japanese Self Defense Force pilots. “These training flights with Japan demonstrate the solidarity and resolve we share with our allies to preserve peace and security in the Indo-Asia-Pacific,” the U.S. Air Force said.
A large U.S./South Korea military exercise begins later in the month. There are plenty of opportunities for this situation to spin back out of control.