ibusinesslines.com
ibusinesslines.com July 23, 2018


Gold Closes at One-Week High as North Korea Talk Grows Heated

13 August 2017, 01:57 | Kelvin Horton

GETTYGold prices have jumped amid North Korea war fears

GETTYGold prices have jumped amid North Korea war fears

Both the Swiss franc and the yen have climbed against the dollar this week, after US President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States.

Many world stock markets have hit record or multi-year highs in recent weeks, leaving them vulnerable to a sell-off, and the tensions have proved the trigger.

A batch of disappointing earnings results from big retail chains and simmering tensions between the US and North Korea weighed on the market.

NEW YORK, Aug 11 (Reuters) - Wall Street put a floor under global equities on Friday after a weak inflation reading brought investors back into USA stocks even as tensions between the United States and North Korea continued to escalate, though the geopolitical fears still drove safe-haven buying of gold and the yen.

The yen has also registered its biggest weekly gain since May against the dollar amid speculation that investors of Japan, as the biggest creditor nation, would repatriate their funds should a war break out.

The dollar index.DXY, which tracks the greenback against six rival currencies, was down 0.17 percent to 93.391.

Early in the day, North Korea revealed a detailed plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, a major military hub and home to U.S. bombers.

In forex trading, the dollar fetched 109.99 yen, almost flat from 110.02 yen in NY but up slightly from 109.74 yen in Tokyo Wednesday.


Geopolitics aside, investors would also focus on U.S. economic data and monetary policy, with inflation data being released and two Federal Reserve policymakers making an appearance, Erlam said.

Gold added $16.70, or 1.3 percent, to settle at $1,279.30 an ounce.

"We have not had a 5 percent correction since June 2016". The yield on three-year Treasurys fell 2.0 basis points to 1.804 percent and the return on benchmark five-year government bonds shed 2.0 basis points to 2.004 percent.

Elsewhere in commodities, the September crude contract was up 39 cents to US$49.56 per barrel, September natural gas advanced six cents at US$2.88 per mmBTU and the September copper contract declined two cents at US$2.93 a pound.

"Bearing in mind how well risk assets have performed this year, and how low volatility is, it unsurprising that this increased geopolitical risk has caused some pull back", Andrew Bresler, deputy head of sales trading for Asia Pacific at Saxo Capital Markets Ltd.

And with that, the S&P 500's steak of 58 days without a 1% move in either direction came to an end.

The euro was 0.14 percent higher against the dollar. The move added to escalating U.S. Over the next three months, the average gain has been good but not great - +1.15%.

Traders will also get the opportunity to respond to fresh USA consumer inflation data on Friday.



Other News

Trending Now

The CKW Financial Group Maintains Position in Hewlett Packard Enterprise Company (HPE)
Laurion Capital Management Lp bolstered its position by buying 528,625 shares an increase of 689.8% from 03/31/2017 to 06/30/2017. Hewlett Packard Enterprise makes up about 1.8% of Van Strum & Towne Inc.'s portfolio, making the stock its 25th largest position.

Tottenham target not named in their club's match day squad
The deal would eclipse the £30m Spurs spent on both Erik Lamela in 2013 and Moussa Sissoko on deadline day a year ago . Christian Eriksen also joined Spurs from the Dutch club and all three have been a huge success in north London.

4 natural disaster hits Indonesia's Sumatra: USGS
Power outages were reported in some areas, but no structural damage was reported. According to reports, tremors were felt in Singapore as well.

Jammu and Kashmir shutdown over Article 370
It leads to the violation of the right of a woman to "marry a man of her choice". The NGO contended that the 1954 order was supposed to be a temporary provision.

ESports Being Considered For 2024 Summer Olympics
Some of the most popular eSports games are Dota 2, League of Legends , Counter-Strike, Call of Duty , Overwatch and StarCraft II. A key cog in the decision of whether or not to add esports will be International Olympic Committee ( IOC ) President Thomas Bach.

No change to Alexis Sanchez situation says Arsene Wenger
Wenger added he had a lot of players whose fitness he wasn't sure about going into the match. " Sanchez will not be available", said the Arsenal manager. "He is focused.

Public Libraries Giving Away Solar Eclipse Glasses
Fort Smith Public Library - They will also be having viewing parties at the different branches with glasses available. And if the glasses are damaged with a scratch or a hole - that means they're defective and potentially unsafe .