FX.co ★ Gold falls on the background of reducing the risk of military conflict between the US and North Korea

Gold is gradually falling in price. This is happening against the background of a decrease in fears of a military conflict between the United States and North Korea. Yesterday, North Korean authorities refused to threaten to attack the US after very aggressive statements made to each other.

Korean leader Kim Jong-un decided not to attack Guam after consulting with the military command, but he warned that he could change his mind if the US continued to persist in its extremely dangerous and reckless actions.

Yesterday it became known that the Chinese Ministry of Trade imposed a ban on the import of certain North Korean goods. The prohibition will include coal, iron, iron ore, lead, lead ore, and seafood. Beijing's actions were aimed at maintaining the sanctions imposed by the US Security Council in August this year in connection with Pyongyang's nuclear weapons program.

Also yesterday, the EU called for a peaceful resolution of the issue regarding North Korea's nuclear program.

Quotes of gold quickly slipped down from monthly highs at the end of last week, from 1290 to the level of 1272, which was updated today in the Asian session. It is possible that the pressure on gold will continue and will lead to short-term goals of 1270 and 1264.

The Australian dollar declined after the publication of the Australian Reserve Bank's minutes, which indicated that the level of interest rates was consistent with the achievement of GDP and inflation targets.

According to the management of the RBA, the main problem is the Australian dollar rate, which creates uncertainties in the forecasts for GDP and inflation. Further strengthening of the Australian dollar will slow inflation and the expected rise in GDP in the third quarter of this year.

The RBA also drew attention to the fact that out running labor market indicators indicate a reduction in under-utilized capacities, and wage growth is expected to accelerate somewhat as the labor market situation improves, which will lead to an increase in household incomes.

As for the technical picture of the AUD/USD pair, the further strengthening of the US dollar could lead to a decrease in the trading instrument to the area of important support levels of 0.7820 and 0.7785 in the short term. From these levels, it will be possible to observe a surge in the volume of buyers of the Australian dollar with a return to 0.7920 and 0.7975.

In the second half of the day, there will be data on the change in the volume of retail trade, which can support the US dollar.