Economy

Gold Prices Rise amid Tensions between Washington and Pyongyang

Gold Prices Rise amid Tensions between Washington and Pyongyang”

NEW YORK, Sept 25 (Reuters) - Stocks on Wall Street added to earlier losses while USA government bond yields dropped after North Korea accused the United States of having declared war on the isolated country, while the euro fell after German elections showed support for Chancellor Angela Merkel's party fell to its lowest since 1949.

"The whole world should clearly remember it was the United States who first declared war on our country".

The pan-European FTSEurofirst 300 index rose 0.23 percent and MSCI's gauge of stocks across the globe shed 0.54 percent.

The White House spokeswoman said at a press briefing that the United States had not declared war on North Korea and to suggest that is "absurd".

On currency markets the dollar struggled to recover from its NY losses and was sitting around 111.60 yen, well off the levels around 112.50 yen seen in Tokyo earlier Monday.

The most active gold contract for December delivery rose 14 dollars, or 1.08 percent, to settle at 1311.50 dollars per ounce. The dollar index was up 0.2 percent at 92.32 against a basket of currencies.

And while German Chancellor Angela Merkel won a fourth term as leader of Europe's biggest economy, her falling share of the vote and need to build a coalition government have left investors uneasy.

The pound was up against the dollar and euro in early trade but fell against the greenback to stand at 1.3492 by late afternoon.

However, energy firms were mostly higher as oil prices surged Monday after Turkish President Recep Tayyip Erdogan threatened to block the key crude exports from Iraq's Kurdish region, which is holding an independence referendum.

The tensions that erupted around the Korean Peninsula have boosted demand for safe-haven assets like gold, market analysts said. He said Pyongyang reserves the right to take countermeasures.

Benchmark 10-year notes last rose 12/32 in price to yield 2.2216 percent, from 2.262 percent late on Friday.

Analysts said a rise in oil to a 26-month high, which bolsters inflation, and an upcoming sale of two-year German debt should also keep upward pressure on yields.

The spot gold in the USA was almost unchanged at $1,310.61 per ounce at 0339 GMT, marking its biggest intra-day percentage gain since September 7.

The gold futures were given additional support as the U.S. Dow Jones Industrial Average fell 70.87 points, or 0.32 percent, to 22,287.72 as of 1832 GMT. Palladium was down 0.61 percent at $910.90 an ounce.



Like this

Latest


26 September 2017
Steelers OL, Army Ranger Alejandro Villanueva explains anthem decision
He said head coach Mike Tomlin told the players to come to a unified decision about what they would do during the anthem. In the photo below, that's Villanueva's leg, so you can see how close he was to his teammates.

26 September 2017
Politics is not a movie: Tamil Nadu minister to Kamal Haasan
Is the chief minister's post some kind of a toy that can be purchased from the market . People should recognise and people should accept.

26 September 2017
Hurricane Maria left over 15 dead in Dominica: Prime Minister Roosevelt Skerrit
Puerto Rico's governor has declared a state of emergency ahead of that landfall, which will likely happen Wednesday. Dominica's mountainous crags also exacerbate the risk of lethal landslides triggered by Maria's remnant rains.

26 September 2017
North Korea says Trump has 'declared war'
North Korea has repeatedly said it needs a nuclear deterrent because the USA intends to invade it. The Trump administration also said it was not advocating regime change in North Korea.

26 September 2017
Porsche Panamera Turbo S E-Hybrid Sport Turismo revealed
Despite the extra sheetmetal, the new Sport Turismo doesn't cost much more than the regular Turbo S E-Hybrid sedan. The rear bench holds space for two adults and a child, and can be folded electronically in a 40:20:40 split.

26 September 2017
27 civilians dead in Russian strikes in Syria's Idlib: UK-based monitor
The SDF fighters, backed by U.S. special forces, are combing the city to defuse the bombs left by IS, said the Observatory. The Pentagon accused Russian jets of attacking the SDF last week.

26 September 2017
India funding terror outfits to launch attacks in Pakistan: Tipu Usman
Lodhi "yet again sought to divert attention from Pakistan's role as the hub of global terrorism", Tripathi said. Pakistan, meanwhile, continued with its fake narrative against India.

26 September 2017
Trump's New Travel Restrictions Add North Korea, Chad & Venezuela To The List
The Supreme Court has canceled arguments set for October 10 in the dispute over President Donald Trump's travel ban , after Mr. Sudan was removed from the original list after recent praise from U.S. officials for Khartoum's efforts in fighting terrorism.

26 September 2017
Labour makes its Brexit pitch
We stand ready to take charge of these negotiations, not acting for narrow political gains but in the national interest. Labour's top brass are keen to take the initiative on a number of key issues during this week's party conference.

26 September 2017
Brookfield Asset Management Inc. Acquires Shares of 180300 MGM Resorts International (MGM)
Gabelli Funds Limited Company stated it has 0.05% of its portfolio in Landauer Inc (NYSE:LDR). (NASDAQ:TTEK) for 335,111 shares. In related news, Director Alexis Herman sold 3,745 shares of the business's stock in a transaction on Tuesday, August 1st.



Recommended