Gold steady near 2-month highs as N. Korea tensions lend support

Share
Gold steady near 2-month highs as N. Korea tensions lend support

Gold got an extra boost after data showed United States consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

Foreign investors offloaded shares worth more than 648 billion won (US$566 million), while institutions scooped up more than 678 billion won. "What we're seeing today is political tensions over North Korea and the United States. making people nervous", said Robert Pavlik, chief market strategist at Boston Private Wealth in NY.

North Korea and the United States have traded bellicose rhetoric after the United Nations Security Council further tightened sanctions on North Korea for its two tests of intercontinental ballistic missiles last month.

"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".

With Japanese markets closed for a public holiday, Hong Kong led the downward charge in Asia-Pacific as the Hang Seng lost more than two percent.

U.S. gold futures for December delivery was mostly unchanged at $1,290.50 per ounce. The Korean won fell against the US dollar.

In currencies, the yen rose 0.8 percent versus the greenback at 109.2 per dollar, the strongest level for the Japanese currency since mid June.

"Risk-off sentiment dominates Asian markets into the end of the week with President Donald Trump's words still sending shockwaves into the markets", said Jingyi Pan, market strategist at online trader IG.

"Both (PPI measures) were well below consensus and give us no hope that consumer price inflation is going to materially beat expectations", said Chris Weston, chief market strategist at IG Markets. The dollar index slipped to a one-week low on Friday after the United States data. 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.

US crude was unchanged at $48.59 per barrel and Brent was last at $51.84, down 1.63 percent on the day.

Spot gold inched down 0.1 per cent to $1,284.64 per ounce as of 0616 GMT, but was set for a weekly gain of over 2 per cent.

Geopolitical risks can boost demand for assets considered safe-haven investments, such as gold.

Share

Advertisement

Related Posts

Nemanja Matic Sale a Casualty of "Crazy Transfer Market", Says Antonio Conte
The midfielder rejoined Jose Mourinho for £40million, opting to leave last season's Premier League champions for Old Trafford. Although disappointed about losing Matic, Lampard appears very optimistic about the future of the new Chelsea man Bakayoko.

Dehradun boy wanted to end life, say school officials — Blue Whale Dare
After a 13-year-old Indore boy tried to attempt a suicide by jumping off from his school building on the third floor. A 14-year-old Ankan covered his head with a plastic bag and tied it tightly around his neck with a nylon cord.

Coutinho fate beyond me - Klopp
However, Hornets boss Marco Silva felt his players deserved a point from a match in which they twice lost a one-goal lead. We had a very good first half, a good intensity like I wanted", he told BBC Sport. "Hard to accept.

Things You Should Know About The August 21st Eclipse
There's a very good reason that it's hard for us to gauge the impact of the eclipse: We just aren't accustomed to it. The safest way to look at the sun, whether during an eclipse or not, is through specially designed solar filters.

Bhoomi Song Trippy Trippy: Sunny Leone's Sultry Avatar Leaked
Talking about the song, Sunny had earlier revealed to Mumbai Mirror, "I have been working on it with Omung sir and Ganesh sir". Also, T-Series and Legend Studios are producing the movie whereas the Mary Kom fame director Omung Kumar is directing it.

Alleged Australian ISIS Fighter Neil Prakash Seeks Consular Assistance
Bishop told News Corp that Turkish criminal proceedings would have to be concluded before any extradition to Australia took place. In May, Prime Minister Malcolm Turnbull said he expects Australia to extradite Mr Prakash within months.

Militant opens fire; two cops, army man injured — CASO in Hajin
Giving details, they said as CASO was launched on specific inputs about the presence of militants in the area, militants fired from the outer circle.

BC NDP government hires legal advice for Kinder Morgan challenges
The owner, Texas-based Kinder Morgan, wants to triple shipments of Alberta oil through its system to 890,000 barrels per day. The fight against the pipeline could be an expensive one, and not just because of the legal costs.

Sharad Yadav begins Bihar tour, says he is with Grand Alliance
In addition, six party MLAs did not vote since they had quit the party and resigned from membership of the legislative assembly. Tyagi's statements were however countered by Ambalal Jadhav, the JD (U)'s general secretary in Gujarat.

Public Libraries Giving Away Solar Eclipse Glasses
In order to properly observe such an event without suffering permanent eye damage , special #eclipse viewing glasses are required. Fort Smith Public Library - They will also be having viewing parties at the different branches with glasses available.

© 2015 ExpressNewsline. All Rights reserved.