Gold soars as the United States and North Korea wage a verbal war

Dow Jones Industrial Average

When the rhetoric between the two leaders heated up, investors were scurrying for safe haven currencies, including the Yen and the Swiss Franc, which surged about 1.1% on Wednesday. The EUR/CHF was up 0.11% and trading at 1.1341 Swiss Francs. This week has seen its biggest rise since June 2016.

"Where the current tensions escalate sharply, we would expect an acceleration of this week's price action, i.e. a sharp rise in risk premiums across asset classes, substantial falls in U.S. and German government bonds yields, significant JPY and CHF strength and a massive sell-off in equities, particularly in Europe which is more linked into the global cycle". "Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued US stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies".

As is often the case, Wall Street was treated to volatility in August, the stock market's most turbulent month.

Fawad Razaqzada of Forex.com told Reuters "the war of words between the leaders of the USA and North Korea continue to dominate investor sentiment".

Wall Street declined on Thursday, with the S&P 500 registering its first daily drop of more than 1% in nearly three months, as investors grew cautious over escalating tensions between the U.S. and North Korea. The euro zone's version is at its highest since April, when France's election was rattling the region. US gold futures gained 0.26 percent to $1,293.50 an ounce.

The U.S. -North Korea tensions add to investor angst that has helped push up gold more than 11 per cent this year, even with equities hitting records and the U.S. Federal Reserve keen to shrink its balance sheet.

The market slide accelerated slightly in the last half-hour of trading as Trump denounced North Korea's nuclear program.

Elon Musk Says 2015 Biography 'Mostly Correct,' But Contests Assistant Firing Anecdote
In addition to being the co-founder and CEO of electric auto company Tesla , Musk was co-founder of PayPal. Not major for a mainstream automaker - but clearly incredible for a company that only sells electric cars .

Tokyo's Nikkei 225 tumbled 1.3 percent to 19,740.12 and Seoul's Kospi fell 0.8 percent to 2,375.88. Hong Kong's Hang Seng Index dropped 1.69%, while mainland markets saw the Shanghai Composite dip 1.04%.

A Chinese state-run newspaper said on Friday that China should make clear that it will stay neutral if North Korea launches an attack that threatens the United States, but that if the US attacks first and tries to overthrow North Korea's government, China will prevent it doing so.

"This situation is beginning to develop into this generation's Cuban missile crisis", said ING's Robert Carnell in a morning note to clients.

Gold prices jumped to a 2-month peak Thursday, extending recent gains as the war of words between the US and North Korea escalated.

An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 per cent, led by Toronto-based Yamana Gold Inc. At least seven brokerages cut their price targets on the stock. The dollar index, which measures the USA currency against a basket of other major currencies, fell 0.14 percent.

Global benchmark Brent also fell 0.9 percent to $51.44, after Thursday's 1.5 percent drop. Britain's FTSE 100 sank 1.3 percent. Copper, the bellwether industrial metal, was set for its first weekly drop in five weeks.

The market was also waiting for USA inflation data on Friday that would offer clues about the extent to which the strengthening U.S. labour market is spilling over into inflation.

Related News:

  • Burnley Shock Chelsea, Watford Hold Liverpool, Huddersfield Win — EPL

    Burnley Shock Chelsea, Watford Hold Liverpool, Huddersfield Win — EPL

    Chelsea start their title defence against one of the few teams to nick a few points from them in the middle of last season. However, it was Burnley that came closest to scoring again with Robert Brady's free-kick coming off the post.
    One Dead After Car Strikes Crowd At Virginia White Supremacist Rally

    One Dead After Car Strikes Crowd At Virginia White Supremacist Rally

    Video on social media showed a auto at high speed rear-ended another vehicle , then backed up and rammed into pedestrians. The auto ramming killed a 32-year-old woman and wounded 19 people, including some with life-threatening injuries.
    US Navy destroyer conducts operation in South China Sea

    US Navy destroyer conducts operation in South China Sea

    DFA spokesman Robespierre Bolivar stressed ASEAN did not ignore China's continued reclamation activities in the South China Sea. The USS John S McCain destroyer cnducted a fereedom of navigation patrol in disputed waters of the South China Sea on Thursday.
  • Pastor Lim in Toronto after release from Pyongyang prison

    Pastor Lim in Toronto after release from Pyongyang prison

    The Canadian government issued a statement saying it joined Lim's family and congregation in celebrating his homecoming. Lim was detained by North Korean authorities in January 2015 while in the country on a charitable mission.
    Facing North Korean nuclear threat, Guam Catholics urged to 'look to God'

    Facing North Korean nuclear threat, Guam Catholics urged to 'look to God'

    The former speaker said a full-scale blockade might work, but could trigger a "desperate" nuclear launch in retaliation. More than 3,000 kilometres southeast of North Korea, Guam is an important strategic hub for the United States military.
    Washington Nationals star Bryce Harper suffers ugly-looking knee injury

    Washington Nationals star Bryce Harper suffers ugly-looking knee injury

    The 24-year-old is as fearsome a hitter as anyone in the sport, reaching the All-Star Game in four of his first five seasons. Nationals outfielder Bryce Harper left the first inning of Saturday's game with an apparent knee injury.
  • Joe Hart: 'Not many options for permanent move'

    I'd like to think it's helped me. "I can adapt to whatever my manager wants". 'I kept him updated with my situation, ' Hart said. Sometimes take a few things on the chin and dig in and work. "I'd love it to be a little bit smoother, obviously".
    Sri Lanka make late comeback after Dhawan, Rahul fire

    Sri Lanka make late comeback after Dhawan, Rahul fire

    An over later, Shami bowled it full outside off and Karunaratne prodded and the outside edge went to Saha. As far as Playing XI is concerned, left-arm spinner Kuldeep Yadav will make his overseas Test debut.

    Tech companies lead drop on Wall Street

    As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 2.212%. THE QUOTE: While the tough talk about the potential for nuclear war is scary, investors have heard it many times before.
  • Anthony Scaramucci says White House 'plotters' are working to oust Donald Trump

    Anthony Scaramucci says White House 'plotters' are working to oust Donald Trump

    It's his decision, but at the end of the day, the president has a very good idea of who the leakers are inside the White House. He went on to criticise the influence of Steve Bannon and the Breitbart website in the Trump administration.
    Scaramucci: Trump Has to 'Move Away' from 'Bannon-Bart Nonsense'

    Scaramucci: Trump Has to 'Move Away' from 'Bannon-Bart Nonsense'

    But I mean at the end of the day, I think the president has a very good idea of who the leakers are inside the White House. One person was killed and others injured when a driver plowed into a group of counter protesters .
    Tokyo shares fall marginally, eyes on NKorea tensions

    Tokyo shares fall marginally, eyes on NKorea tensions

    South Korean shares were down 0.9 percent and the won was 0.6 percent lower at 1,134.10 at 0048 (8:48 a.m. USA crude was down 0.9 per cent at $48.16 per barrel, on track for a weekly loss of 2.9 per cent.


Most liked

Wenger reveals how he offered Giroud chance to quit Arsenal
The sides went in 2-2 at the break but Arsenal conceded yet again to put their supporters through even more torture. He has a big weight in the squad and it was a relief for me that he chose to stay".

LeBron James Talks Charlottesville Riots, Questions 'Make America Great Again'
The white nationalists were protesting the city of Charlottesville's decision to remove a statue of Confederate Gen. The two other victims were state troopers who were killed when the police helicopter they were in crashed .

India drop Yuvraj for limited-overs games in Sri Lanka
The team also includes young spinners - Kuldeep Yadav and Yuzvendra Chahal with Axar Patel to support them. Yuvraj has scored over 8000 runs in 304 ODIs, apart from playing 40 Tests and 58 T20 Internationals.

Giroud rescues Arsenal to seal 4-3 opening win vs Leicester
That was followed up by Olivier Giroud extremely late in the game with a brilliant header to seal the points on a dramatic night. The Match of the Day pundit told BBC Sport: "The top seven already are nailed on, I don't see any surprise breaking into there".

Corbyn: UK should stay out of any military action against North Korea
Clapper said the USA and North Korea could "blunder" into global military conflict as they exchange escalating hostilities.

BBCI: Nepal floods: Elephants deployed in rescue efforts
At least thirty deaths were reported until Saturday night which, until Sunday afternoon, climbed to 49. "Another 17 are missing". Last weekend in the central lowlands, four girls from the same family drowned when they fell into a flooded roadside ditch.

May God reward those praying for me - Buhari says in London
He said there is tremendous improvement in his health and that he wishes to return home. President Buhari has been away on medical leave since May 7th 2017.

Tony Pulis: 'Up to five signings imminent'
The demands of the Premier League make it hard to blood academy talent and Pulis accepts the priority is to maintain the club's top-flight status.

Safety commission issues fidget spinner safety tips
And that poses a problem, because if there's a battery inside a thing, that thing can catch fire when you least expect it. According to the agency, fidget spinners can break and release small pieces that can cause choking hazards.

Trump May Roll Out Probe Into China and Intellectual Property Theft
Pyongyang this week threatened to fire missiles near the US territory of Guam during an exchange of bellicose rhetoric with Trump. The forced sharing of intellectual property with Chinese firms has been a long-standing concern of the US business community.

Man City tops Premier League table based on bookmakers' odds
I think if you read the French papers, they are on [Kylian] Mbappe's case to finish their transfer market'. The global ace is set to cause a storm just days before the start of the Premier League season.

Iran parliament ratifies legislation to counter U.S. anti-Iran moves
Tehran says its missile program does not breach a United Nations resolution which endorsed the nuclear deal. A second vote will now take place on the bill before it is submitted to a clerical body for final approval.

Shutdown in Kashmir to protect Article 35A
Mehbooba Mufti warned that any tinkering with Article 35 (A) would worsen the situation in the state when it was normalizing. Omar also said that if every assurance claimed by Mufti had been fulfilled, the state would have been trouble free.

'Brangelina' still sailing through! Angelina Jolie calls off divorce from Brad Pitt
Jolie also detailed how their children, Maddox, Pax, Zahara, Shiloh, and twins Vivienne and Knox are dealing with the changes. As he fought for joint custody of their children, Pitt also faced his own parental shortcomings.

Bullpen woes continue as Mariners lose to Angels
That spoiled an outstanding start by the Mariners' Erasmo Ramirez, who allowed an unearned run and three hits in six innings. Moore, 23, was available for the second game of a four-game series against the Los Angeles Angels at Safeco Field.