Published: Вс, Августа 13, 2017
Business | By Max Garcia

Gold jumps to eight-week high, lifting miner's share prices

Gold jumps to eight-week high, lifting miner's share prices

Asian shares and US stock futures slipped on Wednesday and investors piled into havens such as US Treasuries, gold and the yen as tensions on the Korean peninsula escalated, with Pyongyang saying it is considering plans to attack Guam.

European stock markets fell further in opening trade on Friday on intensifying fears over North Korea, dealers said.

The Dow closed down 205 points Thursday, in its biggest decline since May 17, after U.S. President Donald Trump rejected criticism that his threats to release "fire and fury" had been too inflammatory.

"A quick unwinding of prices to below $1,250 an ounce is very possible, especially if the tensions ease quickly and if global growth continues performing the way it is, with most incoming economic data suggesting a rosy economic outlook".

"We're still close to the all-time high so that makes people a little nervous too, so they might say now might be the time to take a little bit of money off the table".

South Korea's benchmark Kospi index fell 1.69%. Ten-year USA yields dropped 4 basis points to 2.242 percent US10YT=RR and German equivalents fell 3 bps to 0.43 percent DE10YT=TWEB, a six-week low. The 1.3 percent gain for the market's main other choice for borrowing to fund speculation, the Swiss franc against the euro, is its biggest rise in more than a year.

The producer price index for final demand edged down by 0.1 percent in July after inching up by 0.1 percent in June. "The yen is the big story really. The market is interpreting it as lowering the odds of the Fed raising rates in December", said Keith Lerner, chief market strategist at SunTrust Advisory Services in Atlanta.

Platinum climbed 0.2 percent to $978.00 per ounce after touching $984.60 during the session, its highest since April 18.

US DATA: The other potential driver in markets will be upcoming USA economic data, including monthly inflation figures, which could go a long way to determining expectations for the pace at which the Federal Reserve raises interest rates.

"Where the current tensions escalate sharply, we would expect an acceleration of this week's price action, i.e. a sharp rise in risk premiums across asset classes, substantial falls in USA and German government bonds yields, significant JPY and CHF strength and a massive sell-off in equities, particularly in Europe which is more linked into the global cycle".

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

Ongoing global glut concerns lingered in oil markets despite a bigger-than-expected draw in US crude inventories.

Sterling was last trading at $1.3009, up 0.27 percent on the day. The Standard & Poor's 500 index fell 0.2 percent, to 2,474.92.

Simmering tensions between the USA and North Korea continued to weigh on investors.

World stocks fell for a third day on Thursday and investors shifted assets into safe haven currencies the Swiss franc and yen as well as gold.

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