Gold steady near two-months highs as North Korea tensions lend support

Posted August 14, 2017

"(Safe-haven demand) has settled down to a certain extent, but the market is still expecting more news to come", said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.

ASIA'S DAY: Earlier, Asia bore the brunt of the mounting geopolitical uncertainty, with South Korea's Kospi index closing down 1.7 percent at 2,319.71 and Hong Kong's Hang Seng ending 2 percent lower at 26,883.51.

The selling carried through Wednesday's premarket session, with USA stock futures falling slightly. Spot gold reached a two-month high.

"If this double freezing finally takes place, then we can sit down and start from the very beginning - to sign a paper which will stress respect for the sovereignty of all those parties involved, including North Korea", Lavrov said.

If North Korea launches an attack that threatens the United States, China should stay neutral, but if the USA attacks first and tries to overthrow North Korea's government, China will stop them, a Chinese state-run newspaper said on Friday.

"We're still close to the all-time high so that makes people a little nervous too, so they might say now might be the time to take a little bit of money off the table".

For the week the S&P fell 1.4 per cent and the Dow lost 1.1 per cent - their largest weekly drops since the week ending March 24 - and the Nasdaq was off 1.5 per cent. The S&P has lost more than 1 percent on only three days this year.

The Korean won continued to fall versus the dollar, down 0.13 percent to 1,143.5 on Friday for a 1.6 percent decline on the week.

The dollar was down 0.77% against the yen at 109.21 yen.

"The yen is the big story really".

"The market is trying to interpret the CPI data as somewhat positive because it is anticipating that the Fed will be on hold not only in September but also possibly in December", said Robert Pavlik, chief market strategist at Boston Private Wealth.

United States producer prices unexpectedly recorded their biggest drop in almost a year, and the number of Americans filing for unemployment benefits unexpectedly rose last week.

A small rise in a measure of US consumer prices pointed to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year, which would be favorable to equity investors.

U.S. Treasury long-dated yields dropped to six-week lows, pressured by U.S.

"If you strip away what's going on in North Korea, and if you strip away what's going on in Washington, which are things that are tougher to predict, the economy, the global recovery, earnings, it all paints a very positive picture for the rest of the year", Kravetz said.

The 30-year bond was last up 4/32 in price to yield 2.7871 percent, from 2.794 percent late on Thursday.

Crude oil prices extended their slide as exports from key OPEC producers rose, despite news of lower crude shipments from Saudi Arabia.

The cornerstone of his plan, however, is a call for the USA military to call off long-scheduled joint exercises with South Korea, like the one set to begin in just a couple weeks.

This gave investors some hope at the end of a jittery week, which could show the S&P's biggest weekly loss in more than four months, primarily due to a continuous exchange of threats between the United States and North Korea.