Published: Fri, August 11, 2017
Economy | By Annette Adams

Global gold prices rise on rising US-North Korea tensions

Global gold prices rise on rising US-North Korea tensions

Tokyo's blue-chip index tumbled 1.3 percent to its lowest close since late May after the Dow's winning streak of nine straight records ended following Trump's sharp rhetoric of "fire and fury", with the main European bourses also opening lower Wednesday.

Stocks are falling in midday trading on Wall Street, led by declines in technology companies and banks.

"Japanese equities hadn't been rising much despite positive earnings results, so investors had started jumping at shadows, doubting whether they should really be holdings onto Japanese stocks".

Mr. Cappelleri said he would need to see more pullbacks of at least 1% before becoming anxious about the stock market.

European and US stock exchanges fell Wednesday as investors reacted to rising tensions between the United States and North Korea.

The dollar index was trading 0.2 percent up at 93.73.

All three major stock indexes dropped 0.2 per cent at the close, with the Dow Jones Industrial Average finishing at 22,085.34, halting a almost two-week run of closing records. Earlier, the average had been down more than 88 points. The Nasdaq composite lost 0.3 percent to 6,352.33. The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9%, to 1,396.95.

Gold prices on Thursday finished at their highest level in more than two months Thursday, adding to the previous session's sharp daily rise, as simmering North Korean tensions buoyed haven bids.

The Pentagon said it had received the request to review the guidelines from South Korea and the military was working with the State Department to determine the best way forward.

South Korea's military said on Thursday North Korea's recent statements regarding striking the US territory of Guam are a challenge against Seoul and the U.S.

Wall Street got off to a downbeat start early Thursday as tensions between the USA and North Korea continued to escalate, rattling markets overseas. Geopolitical risks can boost demand for safe haven assets such as gold.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.23 percent.

Perrigo surged 17.6 percent after the drugmaker raised its full-year adjusted profit forecast.

The Canadian dollar was trading at an average price of 78.67 cents United States, down 0.04 of a USA cent. It was last up 1.1 percent at 1.1321 per euro. The dollar was down 1.2 percent at 0.9627 Swiss francs, while an ounce of gold was 1 percent higher at $1,275. USA gold futures gained 1.63 percent to $1,283.20 an ounce. While the French CAC 40 Index fell by 0.6 percent, the German DAX Index slumped by 1.1 percent and the U.K.'s FTSE 100 Index plunged by 1.4 percent.

USA crude rose 1.08 percent to $49.70 per barrel and Brent was last at $52.78, up 1.23 percent on the day.

Semiconductor, computer hardware, oil service, and retail stocks also saw considerable weakness, moving lower along with most of the other major sectors.

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