Economy

Gold rebounds sharply amid geopolitical tensions, stock market declines

Gold rebounds sharply amid geopolitical tensions, stock market declines”

The US dollar is trading at it's highest level this month against a basket of currencies, with the dollar index 0.58% firmer to 93.181, despite data out on Tuesday showing consumer confidence in the US was down to 119.8 after a revised figure of 120.4 last month while new home sales were also down to 560,000.

U.S. President Donald Trump has "declared a war" on the Democratic People's Republic of Korea (DPRK), DPRK's Foreign Minister Ri Yong-ho said on Monday.

In currencies, the euro fell as worry grew about political fallout in Germany and other euro zone countries.

The yen stood tall on Tuesday after tensions on the Korean peninsula flared-up anew amid an escalating war of words between North Korea and the United States, while the euro struggled near a four-week low versus the dollar.

Data released late on Friday showed speculators had cut their bets against the pound to the lowest level in nearly two years in the week to last Tuesday after the Bank of England signalled it would raise interest rates from record lows in the "coming months".

The euro slipped as far as $1.1782 in early afternoon trade in London, its weakest since August 25, after falling around 0.9 percent on Monday - its heaviest one-day loss since December. The Canadian dollar lost ground against its US counterpart on Monday as Canadian dollar was under the pressure from geopolitical tensions between the United States and North Korea kept investors on edge.

The Japanese yen strengthened 0.29 percent versus the greenback at 111.66 per dollar, while Sterling was last trading at $1.3469, down 0.16 percent on the day.

North Korea said on Saturday targeting the USA mainland with its rockets was inevitable after "Mr". MSCI's gauge of stocks across the globe shed 0.30 percent as shares in Asia and emerging markets declined.

European shares edged down on Monday as investors took a cautious view of the upcoming coalition tussle in Germany following elections in which Chancellor Angela Merkel secured a fourth term but saw her party weakened by a surge in support for the far-right.

Japan's Nikkei stock index finished 0.3 percent lower, pressured by a stronger yen.

The Dow Jones Industrial Average fell 53.5 points, or 0.24 percent, to 22,296.09, the S&P 500 lost 5.56 points, or 0.22 percent, to 2,496.66 and the Nasdaq Composite dropped 56.33 points, or 0.88 percent, to 6,370.59.

Investors will be parsing her words for clues on whether the US central bank will stick to its plan to raise interest rates in December. The dollar index was last up 0.5 percent.

Stocks fell on Wall Street and U.S. 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 conservative party fell to its lowest since 1949.

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

Spot gold fell 0.1 per cent to $1,308.90 per ounce at 0038 GMT.

Gold prices rose on Monday, reversing earlier losses as geopolitical risks drove safe-haven buying.

The pound to euro exchange rate has risen from €1.12833 to highs of €1.13781 over the past day, following the German Election results.

US crude rose 2.96 percent to $52.16 per barrel and Brent was last at $58.63, up 3.92 percent on the day.

US gold futures for December delivery settled up $14, or 1.08 percent, at $1,311.50 per ounce.

The rise was supported by Turkey's threat to cut crude exports from Iraq's Kurdistan region as well as signs that market rebalancing is accelerating.

U.S. West Texas Intermediate crude for November delivery rose $1.56, or 3 percent, to settle at $52.22 a barrel, the highest since April.



Like this

Latest


28 September 2017
Royal Caribbean uses own cruise ship to deliver supplies to Puerto Rico
The ship will bring evacuees to Fort Lauderdale before returning to San Juan on October 6 to prepare for the October 7 cruise. Thomas and St Croix too and will be evacuating nearly 3,000 people including families of Royal Caribbean employees.

28 September 2017
15000 'guest' school teachers in Delhi to become permanent
Interestingly, 14 bills of Delhi government is pending which were passed by the assembly two years ago. The assistant teacher's salary would be increased from Rs 16,000 to Rs 32,000 a month.

28 September 2017
Hot Stock of the Day - Westlake Chemical Partners LP (NYSE:WLKP)
Westlake Chemical Corporation is a global manufacturer and marketer of basic chemicals, vinyls, polymers and building products. Ruggie Capital Group purchased a new position in shares of Westlake Chemical Corporation in the 1st quarter worth $117,000.

28 September 2017
Antonio Conte grateful to decisive substitute Michy Batshuayi
Having agreed to move Costa out, Chelsea are set to be immediately reacquainted with him on Wednesday. Costa , however, does not appear to have put his dispute with Conte behind him as yet.

28 September 2017
IAF Trainee Aircraft Crashes In Telangana, No Casualties Reported
A trainee aircraft of Indian Air Force crashed in Keesara village near Medchal district in Hyderabad on Thursday. The two-seat trainer was being flown by a flight cadet, who escaped unhurt, they added.

28 September 2017
Times Higher Education rank UCLA No.1 public university
The rankings also place Texas A&M in the top 10 percent in the overall ranking among 1,054 colleges and universities surveyed. Purdue is fifth among public institutions and 43rd overall nationally, according to the rankings.

28 September 2017
New US travel ban "psychological terrorism": Venezuela
Trump had threatened to "totally destroy" North Korea if forced to defend the USA or its allies. Maduro responded from Caracas by calling Trump "the new Hitler" of worldwide politics.

28 September 2017
UAE Announces $140 Million BIG-Designed Mars Science City
The ruler has unveiled plans for a 1.9 million square-foot simulation city that will imitate real-life living on the surface of Mars.

28 September 2017
Cardinals stand, lock arms for national anthem; Cowboys briefly kneel, then stand
Trump has claimed that kneeling during the anthem is disrespectful to American servicemen and -women and the national anthem. New England Patriots owner Bob Kraft and quarterback Tom Brady, friends of Trump's, took issue with his remarks.

28 September 2017
Ghost Recon Wildlands Ghost War PvP Mode Launching October 10
There are eight maps and 12 classes at launch, and Ubisoft has said it will have "regular updates and new content" after launch. You can check out the new trailer below in anticipation for the mode's launch on October 10.



Recommended