Global gold prices rise on rising US-North Korea tensions

Yen Franc Gains May Evaporate as Quickly as They Appeared

Yen Franc Gains May Evaporate as Quickly as They Appeared

Gold hit its highest levels in two months on Thursday as the usa and North Korea exchanged more threats, prompting investors to buy bullion as a safe-haven asset.

Trump warned North Korea again on Thursday not to strike Guam or US allies, saying his earlier threat to unleash "fire and fury" on Pyongyang if it launched an attack may not have been tough enough.

U.K.'s FTSE 100, the German DAX and the French CAC 40 all dropped more than 2.3% this week. It had gained about 2.8 percent for the week so far. Japan was closed on a public holiday.

For investors, the recent war of words between Trump and Kim was a reminder, Elliott noted, of the importance in "remain [ing] diversified in our investing habits" - and was most definitely not, he stressed, a cue for anyone to embark on a round of panic selling.

North Korea "has no intentions of backing down".

Australian shares were down 1.3 percent, set for a weekly loss of 0.6 percent. Panasonic was off 0.74 percent to sit at 1,475.5 yen.

The South Korean stock market and the Korean won are likely to be most vulnerable to declines in response to rising worldwide investor concerns that military tensions are escalating further.

"If the USA and South Korea carry out strikes and try to overthrow the North Korean regime and change the political pattern of the Korean Peninsula, China will prevent them from doing so", the editorial's authors said.

Trump declined to say whether the USA might consider a pre-emptive strike against North Korea, but said he was still open to negotiation.

Trump's second warning, however, has shaken markets that have been largely resilient this year, swatting away a slew of risks. "Whether it is a credit crunch in China, policy error from the Fed, or fear of an over-valued U.S. stock market, there are many reasons to maintain a balanced multi-asset portfolio that has exposure to defensive asset classes and currencies". In Asia, several indexes closed lower overnight.

U.S. warns North Korea to avoid destruction of its people
Trump said North Korean leader Kim Jong Un was not going to get away with his "horrific" comments and disrespecting America. Trump threatened North Korea with "fire and fury" in return.

S&P 500 e-mini futures were down 0.2 percent, while the dollar dipped 0.2 percent against its perceived safe-haven Japanese counterpart to 110.12 yen. It was down 0.2 percent at 108.98 yen, after retreating 0.7 percent on Thursday.

The yen tends to benefit during times of geopolitical or financial stress as Japan is the world's biggest creditor nation and there is an assumption that Japanese investors there will repatriate funds should a crisis materialise.

But "the yen may be expected to lose its safe haven status if U.S".

THE QUOTE: "Today's inflation data put the Fed on pause and really diminishes the fact that there's still some noise going around with the North Korea-U.S. situation", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. Ten-year U.S. yields dropped 4 basis points to 2.242 percent and German equivalents fell 3 bps to 0.44 per cent, their lowest since 30 June. The market was also waiting for U.S. inflation data on Friday that would offer clues about the extent to which the strengthening United States labour market is spilling over into inflation.

US producer prices unexpectedly recorded their biggest drop in almost a year, and the number of Americans filing for unemployment benefits unexpectedly rose last week.

Investors also drew some encouragement from new government data showing US inflation at the consumer level inched higher last month.

The market's backstop safety asset, gold, edged up to its latest two-month high of $1,288 an ounce. Its weekly gain of 2.6 percent is the largest since June 2016.

Crude oil prices tumbled on the back of the selloff on Wall Street and lingering concerns over global oversupply.

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.

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