Gold Rises as North Korea Tensions Persist

Judith Bessette
Agosto 14, 2017

"The data confirms the Fed will have a wait-and-see attitude", said King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco.

US stocks closed lower for the third day in a row Thursday, led by declines in technology companies and banks, two of the highest-performing sectors over the past year.

Following Trump's remarks, North Korea on Wednesday said it was "carefully examining" plans for a missile attack on the US Pacific territory of Guam, which is home to a large US military base.

"U.S. markets had previously been becalmed amidst the Goldilocks scenario of strong profit growth, low interest rates and full valuations".

Nasdaq 100 e-minis were down 17 points, or 0.29 percent, on volume of 36,232 contracts.

At 1.30pm, the United States will announce the jobless claims report, and economists are expecting it to remain steady at 240,000.

Ryu Yong-seok, a market analyst at KB Securities, said tensions between North Korea and the USA are a negative factor in the local stock markets that dragged down the index. Investors welcomed new data showing US inflation at the consumer level inched higher last month, suggesting that the Federal Reserve may be less likely to raise interest rates next month. Japan is the world's biggest creditor country and there is an assumption that investors there will repatriate funds in a crisis.

The S&P 500 Index (SPX - 2,441.32) gained back 3.1 points, or 0.1%.

CURRENCIES: The dollar fell to 109.96 yen from 110.48 yen late Tuesday.

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"If the data continues to come in on the softer side, the market might start to price the Fed staying on hold this year", said Sireen Harajli, FX strategist at Mizuho in NY.

USA stock futures were 0.1 per cent lower on Friday.

Enerplus Corp jumped 8.3 percent to C$11.65 after the oil and gas company increased its production guidance, while the broader energy group ended 0.1 percent lower.

FED WATCH: Investors looked ahead to an appearance Thursday by Bill Dudley, president of the U.S. Federal Reserve Bank of NY, for signs of the Fed's outlook on the economy.

U.S. investors saw Tillerson's comments as evidence that the stand-off between Washington and Pyongyang would be settled by diplomacy rather than by military means.

The technology sector.SPLRCT was the S&P's biggest drag with a 2.2 percent drop.

Gold prices XAU= rose 0.2 percent to $1,287.30 an ounce, after surging over 2 percent in the previous two sessions to a two-month high.

Spot gold was up 0.1 per cent at $1,287.83 per ounce at 0955GMT, set for its biggest weekly gains since April.

United States crude futures extended losses from Thursday when they tumbled 2 per cent on fears of slowing demand and lingering concerns over a global oversupply. Brent crude, used to price global oils, added 21 cents to $52.91.

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