Published: Sat, August 12, 2017
Business | By Max Garcia

Gold prices surge in Dubai, will it rise further?

Gold prices surge in Dubai, will it rise further?

Gold prices held steady after touching their highest in more than two months on Friday, as rising tensions between the United States and North Korea triggered safe-haven buying.

Trading was thinner than usual, with Japanese markets closed for a public holiday. It comes as North Korea responded to President Donald Trump's warning, with the country saying it would consider hitting U.S. territory Guam with a missile strike.

South Korea's KOSPI fell 1.8 per cent to an 11-1/2-week low, but its losses for the week are a relatively modest 3.2 per cent.

North Korea responded by saying it was "carefully examining" the idea of a missile strike on Guam, a US Pacific territory. It was down 0.2 percent at 108.96 yen, after retreating 0.7 percent on Thursday.

Australian shares were down 1.3 per cent, set for a weekly loss of 0.6 percent and Chinese and Hong Kong bluechips lost 1.6 per cent and 1.9 per cent, respectively.

The dollar index, which tracks the greenback against a basket of six major rivals, was almost flat on the day at 93.646, remaining above last week's 15-month low of 92.548.

With the tense mood pushing European shares down for a third day and Wall Street set to fall again, global stocks were on course for their worst week since Donald Trump won November's US presidential election.

Low U.S. Treasury yields are also weighing on the dollar.

Gold fell $2.10 to $1,262.60 an ounce.

Rising tensions between North Korea and the United States were once again the theme of the day with only the release of much-awaited inflation figures out of the USA managing to divert attention away from developments on that front.

Still, he said, "the Washington, D.C., bedlam and North Korea's saber-rattling is muddying the broader landscape".

"While the U.S. President insists on ramping up the war of words, there is a decreasing chance of any diplomatic solution", Carnell said.

On the currency markets, sterling rose 0.2% to flit around the 1.30 United States dollar mark, with the greenback falling in response to the latest U.S. inflation data.

Seagate Technology gained 2.3 percent after investor ValueAct disclosed that it had acquired a 7.2 percent stake in the digital storage company.

Sterling slipped below $1.30, close to a two-and-a-half-week low but it strengthened against the euro by 0.2%, following Tuesday's 10-month low.

Among economic data, the U.S. Labor Department is likely to report that initial jobless claims remained unchanged at 240,000 for the week ended August 5. July's 0.1 percent increase in consumer prices suggests that the Federal Reserve may be less likely to raise interest rates next month.

Nasdaq 100 e-minis were down 1 points, or 0.02 percent, on volume of 49,062 contracts. Dollar" and there is the "U.S.

S&P 500 e-minis were up 1.5 points, or 0.06 percent, with 300,073 contracts traded.

USA crude shed 20 cents to $48.97 a barrel, while Brent crude fell 26 cents to $51.88 a barrel.

Nvidia's quarterly revenue in its data center and automotive businesses missed estimates, dragging the chipmaker's shares down 8.6 percent.

Like this: