Published: Sat, August 12, 2017
Markets | By Noel Gibbs

Gold Prices Hit 2-Month Highs, Defensive Demand Continues

Gold Prices Hit 2-Month Highs, Defensive Demand Continues

Copper traded at $2.912, down 0.25%, while natural gas tacked on 0.23% to $2.991. Its shares slid $9.77, or 5.3 percent, to $174.02.

The BATS UK 100 ended down 1.1% at 12,411.13, the BATS 250 closed down 0.8% at 17,756.36, and the BATS Small Companies ended 0.3% lower at 12,174.77.

Chaiyaporn Nompitakcharoen, executive vice-president of Bualuang Securities, said the rout was the story in most stock markets around the globe for over a week, driven by nerves over the intensifying rhetoric between the U.S. and North Korea. Trading was thinner than usual, with Japanese markets closed for a public holiday. Hong Kong's Hang Seng was off 0.3 percent.

The US military's options are "locked and loaded", Trump said on Friday in a warning to North Korea if it chose to "act unwisely".

The benchmark index tumbled 1.3 per cent on Wednesday to hit the weakest closing level since May 31 in the wake of US President Donald Trump's "fire and fury" warning to North Korea.

"It's about time somebody stuck up for the people of this country and the people of other countries, so if anything, maybe that statement wasn't tough enough", Trump told reporters at his golf resort in Bedminster, New Jersey, where he is on vacation.

S. Korea's military vows retaliation if N. Korea attacks
The 163,000 residents that make up Guam's population, which includes 6,000 USA service members, are considered US citizens. Guam officially became a USA territory in 1950 and was put under the administration of the Department of the Navy .

The reclusive state raised the stakes further with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam.

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

Gold prices rose on US-North Korea tensions.

Markets remained concerned over the risk of a U.S. first-strike against North Korean nuclear facilities.

The Dow Jones Industrial Average climbed 0.08% on Friday, Aug. 11, the S&P 500 gained 0.13%, and the Nasdaq added 0.64%.

Thursday's selling in the USA extended to global markets Friday.

US Navy challenges China's claims in disputed territory
They sought compliance with an arbitration ruling past year that invalidated China's claims in the South China Sea. The reef is an artificial island built by China in the Spratly Islands, known by China as the Nansha Islands.

Separately, U.S. producer prices unexpectedly fell in July, recording their biggest drop in almost a year, weighed down by declining costs for services and energy products. Consumer prices ticked just 0.1% higher during the month after coming in flat during June.

Excluding food and energy prices, core producer prices still dipped by 0.1% in July after creeping up by 0.1% in June.

"Most certainly the market was hoping for some upbeat assessment from Fed Bill Dudley but it was Trump talk that trashed the equity markets, nothing more nothing less", said Oanda's Stephen Innes. With concerns over stubbornly low inflation weighing heavily on the prospect of another US interest rate increase, the pending US CPI data will be in sharp focus. "Perhaps we are done with the interest rate for this year", Aslam noted.

Futures markets were also pointing to a lower start for Wall Street, where missile makers have been the only significant gainers in recent days.

The FTSE's fall was led by the volatile mining sector, with London-listed global commodity firms such as Antofagasta, Rio Tinto, BHP Billiton and Anglo American among the biggest losers. The iShares MSCI South Korea Capped ETF fell 2%. Total adjusted operating profit rose 37% to GBP969.0 million from GBP708.0 million year-on-year.

Liverpool boss Jurgen Klopp believes £271million transfer will happen
A star player on one side and another one on the other makes the player in the middle a star too. Where we want to go and where this should stop.

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