Gold On Verge Of $1300 After North Korea Threats

  • Gold On Verge Of $1300 After North Korea Threats

Gold On Verge Of $1300 After North Korea Threats

The index's losses mirrored global markets, which fell after incendiary words between the United States and North Korea.

MSCI's broadest index of Asia-Pacific shares outside Japan skidded 1.2 percent in its third session of declines, heading for a 2.1 percent drop for the week.

The euro eased 0.1 percent to $1.1766, staying below a high of around $1.1910 set last week, the euro's strongest level in 2-1/2 years.

All three USA stock market indices were down Wednesday morning.

Such tensions remained high, with North Korea's state media saying on Thursday that North Korea will develop a plan by mid-August to launch intermediate-range missiles at the U.S. territory of Guam. It is now on track for its biggest weekly drop since the week before the November 8 US presidential election. North Korea has been a thorn in the flesh for quite some time and the market is always wary about what they are upto and yesterday, we saw them increase their threat levels by a notch or two by threatening to attack Guam.

Earnings also led to some heavy losses.

After a dip of as much as 0.52 percent earlier in the day, investors appeared to take some comfort in Tillerson's comments, said Richard Steinberg, managing director at HighTower Advisors in NY. It is poised to end the week down 1.3 percent.

FINANCIALS FALLING: Several financial sector companies also helped pull down the market.

The Swiss franc USDCHF, -0.8829% bought $1.0382 on Wednesday, representing a 1.2% rise from $1.0266 late Tuesday in NY. The stock fell $2.25 to $20.79.

Canadian Tire Corp Ltd rose 3.4 percent to C$146.65. Its shares tumbled $13.09 to $60.25. The stock fell $1.07 to $5.17.

In commodities trading, USA crude oil was wallowing around $49 to the barrel amid speculation that a predicted gain in American output will offset OPEC-led efforts to trim a global glut.

Pan American Silver Corp, which reported second-quarter results late Wednesday, rallied 10.7 per cent to C$22.47.

While gold, a safe-haven favourite, pared some gains it was last up 1.2 per cent at around its highest since mid-June, while the Swiss franc and the Japanese yen also rose.

U.S. gold futures for December delivery rose 0.2 percent to $1,281.20 per ounce. It slid 80 cents, or 1.5 percent, to close at $51.90 per barrel on Thursday. The September copper contract was down two cents to US$2.91 a pound. It was down 0.1 percent at 109.07 yen JPY= , after retreating 0.8 percent on Thursday.

The euro held steady at $1.1776.

MARKETS OVERSEAS: Major indexes in Europe slumped.

South Korea's Kospi sank 1.7 percent to 2,319.83 and Hong Kong's Hang Seng shed 1.8 percent to 26,946.81.

London's benchmark FTSE 100 index shed 0.9 per cent to 7,323.45 points.

Energy stocks retreated 0.5 percent, despite higher oil prices.