North Korean "saber-rattling" sees gold hit two-month high

By Saqib Iqbal Ahmed

North Korea responded with threats to launch missiles into the Pacific Ocean near Guam, a USA territory. -North Korea tension also weighed on the Canadian dollar, which weakened against its US counterpart, despite higher oil prices and stronger-than-expected domestic housing data.

"Meanwhile, Trump knows that a conflict in North Korea could risk a huge amount of casualties and a huge humanitarian crisis on China's doorstep".

Markets were also lower in Europe and Asia.

Japanese markets were closed for a holiday but the tense mood dragged Asian shares lower and an MSCI index of stocks across the globe was on track to post its largest weekly drop since the week before Donald Trump won the US presidential election in November.

The dollar fell sharply against the Swiss franc Wednesday, with haven assets including Switzerland's currency bid higher following a verbal clash between North Korea and U.S. President Donald Trump.

Trump's threat earlier this week, to unleash "fire and fury" on Pyongyang if it attacked, was ultimately dismissed as bluster by many investors.

The dollar widened losses against the yen to hit a two-month low.

The tension and severity of the potential consequences of further escalation have effected equities, thereby making the safe-haven of gold attractive to investors.

German bond yields fell, gold and the Japanese yen surged and the leveraged bets on higher yielding currencies such as the Australian dollar took a beating. Brent crude, used to price global oils, added 4 cents to $52.74.


Energy stocks retreated 0.5 percent, despite higher oil prices.

The recent resilience of data on the United States economy has not dampened the latest climb, despite depressing prices earlier in the week as reports returned high employment figures ahead of further USA inflation information this week.

The bombing of Pearl Harbor, for instance, resulted in a 3.8 percent drop in the S&P 500 on December 7, 1941.

The Toronto Stock Exchange's S&P/TSX composite index fell 39.02 points, or 0.26 percent, to end at 15,217.33. But for the week the S&P 500 lost 1.3 percent, its worst weekly showing since March. News Corp tumbled 5.4% and REA Group slumped 6% after disappointing full-year results.

High-flying technology names suffered outsized losses on the day, with Apple falling 3.2 percent, Amazon 2.6 percent and Facebook 2.2 percent.

A report released by the Labor Department showed a modest uptick in consumer prices in the United States in the month of July.

Gold prices, which hit a two-month low on Thursday, were steady at $1,286.31 an ounce, after surging over 2 percent in the past two sessions.

Macy's shares closed down 10.2 percent and Kohl's fell nearly 6 percent as the companies continued to report a drop in quarterly same-store sales, stoking concerns that their turnarounds may still be a long way off.

A report on consumer price inflation is likely to attract attention on Friday, with consumer prices expected to rise by 0.2 percent in July.

Related news:

Hot News

Expect Jose Mourinho's side to be stronger - Man United 2017/18 Season Preview
Aug 13, 2017 - 05:19
The football isn't as dreary as it was under David Moyes, and certainly not as boring as it was when Louis van Gaal was in charge. And he has already matched that amount this summer. "The one in front of the camera and another Mourinho in the dressing room".

isis-killer-beheading-video-story-top EU Council expands sanctions against North Korea
Aug 13, 2017 - 05:15
The sanctions also include targeted measures against 13 people and entities linked to Pyongyang's nuclear and missile programs. This follows the new and toughened sanctions resolution on North Korea adopted by the UN Security Council last week.

isis-killer-beheading-video-story-top Sergio Aguero nets as Manchester City battle to opening win
Aug 13, 2017 - 05:13
But Jamie Murphy - on for Chelsea loanee Izzy Brown, who hobbled off after 23 minutes - could not bring down a diagonal pass. Their pre-season exploits have been quite impressive as well, thus leading to increased expectations.

Chelsea begin title defence with defeat to Burnley
Aug 13, 2017 - 05:03
The Spain global moved to Chelsea in a £58m deal from Champions League holders Real Madrid last month to bolster Antonio Conte's attacking options.

isis-killer-beheading-video-story-top Amit Shah officially invites Nitish Kumar to join NDA
Aug 13, 2017 - 04:47
He added that this was not personal fight against Nitish Kumar but a fight of principles and to save democracy and brotherhood. Sources told The Hindu that he would be removed from his position as the leader of the JD (U) parliamentary party group.

isis-killer-beheading-video-story-top We Are Discussing The Possibility Of Ibrahimovic's Man-United Return- Jose Mourinho
Aug 13, 2017 - 04:38
The latest football transfer gossip column from The Sport Review, featuring all of the latest Premier League transfer news and rumours. .

Jose Mourinho insists Manchester United's transfer activity is sufficient
Aug 13, 2017 - 04:10
Now, he's in his second season and the clouds appear to be gathering over the Stamford Bridge skyline. JOSE MOURINHO , Manchester United manager, expressing his satisfaction with his new recruits.

isis-killer-beheading-video-story-top Chris Hadfield weighs in on the Perseid meteor shower
Aug 13, 2017 - 04:06
August is a big month for stargazers and astronomy fans, but this weekend's meteor shower may leave a little bit to be desired. As the Earth crosses its orbit, it ploughs through some of the debris left by the icy object on previous visits.

isis-killer-beheading-video-story-top Arsene Wenger Admits His Best Player Could Leave
Aug 13, 2017 - 03:56
Arsenal record-signing Alexandre Lacazette got off to a ideal by scoring inside two minutes of kickoff. And in the end he made a decision to stay and it was one of the great days of the recent weeks for me.

PSG Land Kylian Mbappe in Stunning £160million Transfer
Aug 13, 2017 - 03:34
In another handsome piece of symbolism, the Guingamp manager is Antoine Kombouare. His PSG era should begin in earnest this weekend, and will be gripping to watch.

isis-killer-beheading-video-story-top Dulquer Salmaan to make Bollywood debut in a film alongside Irrfan Khan
Aug 13, 2017 - 02:57
On the otherside, Dulquer is eagerly waiting for the release of Malayalam-Tamil film Solo , directed by Bejoy Nambiar. Abhishek Bachchan was originally supposed to play Salmaan's role, but he chose JP Dutta's war film Paltan instead.

isis-killer-beheading-video-story-top Two die in state police helicopter crash near Charlottesville
Aug 13, 2017 - 01:50
It came after a white nationalist rally rocked Charlottesville and a auto drove into a crowd of anti-fascist counter protesters. The cause of the crash is under investigation, police say. 'No one on the ground was injured.

isis-killer-beheading-video-story-top Eight army jawans among 15 martyred in Quetta terrorist attack
Aug 12, 2017 - 23:40
At least 15 people were killed and 30 injured in an explosion in the Pakistani northwestern city of Quetta , Sputnik reported. Balochistan Home Minister Sarfraz Bugti also confirmed that a military truck was the target.

Stock in Limelight: FS Investment Corp (FSIC)
Aug 12, 2017 - 23:32
Following the completion of the acquisition, the director now directly owns 34,063 shares in the company, valued at $302,479.44. BidaskClub raised FS Investment Corporation from a "sell" rating to a "hold" rating in a research note on Wednesday, June 28th.

isis-killer-beheading-video-story-top Federer, Canadian teen Shapovalov reach semis in Montreal
Aug 12, 2017 - 23:20
Donaldson, 20, was seeking a first career quarterfinal in a Masters Series tournament, where he is 0-13 in round of 16 matches. After Shapovalov, now 18, beat Adrian Mannarino of France in quarter-final action Friday night, he was asked about the photo.