Gold came under pressure in overseas trading after North Korea abstained from the much anticipated missile test over the weekend. Make no mistake though, the geopolitical drama is not over.
North Korea did celebrate there recent nuclear test on the occasion of the 69th anniversary of the communist government. With the UN expected to vote on new sanctions as early as today, the DPKR has warned that would “cause the US the greatest suffering it has ever gone through.”
There is nothing on the economic calendar today. Focus will be on 9/11 remembrances and hurricanes. Later this week, we’ll see PPI and CPI for August. Modest gains in both are expected, but inflation will remain below target.
With both political and geopolitical tensions high, and the corresponding correction in the dollar muted, this pullback in gold is likely to attract buying interest. First support is noted at 1330.60/1325.99.