Finance

Gold hovers near two-month highs on N.Korea tensions

Gold hovers near two-month highs on N.Korea tensions

At least seven brokerages cut their price targets on the stock.

USA gold futures gained 0.2% to $1,292.70.

North Korea responded to the threat with a promise to land missiles near the US Pacific territory of Guam.

Rising costs for housing, medical care and food helped push the Consumer Price Index (CPI) up 0.1 percent in July, seasonally adjusted, after no change in June and a 0.1 decrease in May, the US Labor Department said. Netflix also fell, giving up $2.58, or 1.4 percent, to $175.78. Both hit more than one-month lows.

The euro was 0.18 percent lower against the greenback but remains the best-performing G10 currency so far this year with gains of more than 11 percent against the dollar.

Geopolitical concerns took centre stage once again after President Donald Trump issued a new round of comments against North Korea.

Japan and South Korea vowed a strong reaction if the North were to go through with the plan.

(Employees push a trolley laden with crates of one kilogram gold bars at the YLG Bullion International Co. headquarters in Bangkok, Thailand.Getty Images/Dario Pignatelli/Bloomberg) Gold has rallied 2.3% this week on the heels of renewed tension with North Korea.

"That may have weighed a little bit" on markets, said Phil Guarco, global investment specialist J.P. Morgan Private Bank.

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Though Hanke said he did not expect a sustained sell-off in riskier Asian assets, he added "safe assets, as a class, are probably underpriced at present".

Wall Street's downbeat start followed a slide in major stock indexes in Europe and Asia. Traditional havens like the yen and the Swiss franc have performed well this week while China's yuan is starting to earn its place as a safe harbor, or is it? Japan is the world's biggest creditor country and there is an assumption investors there will repatriate funds in a crisis. The S&P 500 added 3.11 points, or 0.1%, to 2441.32, ending the week down 1.4%, its biggest loss since March.

"The market has been looking for an excuse to sell off and North Korea and the president gave the market that excuse", said David Schiegoleit, managing director at the U.S. Bank Private Client Wealth Management.

The Straits Times Index sank 1.31 per cent or 43.52 points to 3,279.72, down 1.4 per cent for the week.

The bond market was without direction: the yield of u.s. Treasury bills to 10 years, which evolves to the inverse of the bond price, appears to 2,190 %, compared to 2,198 % Thursday evening, and that bills to 30 years at 2,786 %, compared to 2,773 %.

Several indexes closed lower overnight.

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

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

In commodities, US. crude fell 0.67 per cent to $49.23 per barrel and Brent was last at $52.58, down 0.23 per cent on the day.