Gold buoyed by North Korea tensions, USA inflation data

Gold buoyed by North Korea tensions, USA inflation data

Gold buoyed by North Korea tensions, USA inflation data

In the eurozone, the Paris CAC 40 dropped nearly 0.7 per cent to 5,081.92 points compared with the closing level on Thursday.

On the London Stock Exchange, miners were the main drag for the FTSE 100.

The S&P 500 Index fell to session lows Tuesday, and the CBOE Volatility Index jumped 11 per cent after Trump spoke.

The Hang Seng Index in Hong Kong lost 0.7 perc ent and China's Shanghai Composite Index was down 0.2 per cent. Core prices had also been expected to climb by 0.2%.

Buying interest is somewhat subdued, however, as the ever-escalating war of words between President Donald Trump and North Korea continues to raise geopolitical concerns.

The tensions, since Trump's "fire and fury" comments on Tuesday, have wiped out almost $1 trillion from the global equity markets.

The reclusive state raised the stakes further on Thursday with a detailed plan to send a salvo of missiles towards the U.S. territory of Guam. He noted that when the North test-fired a missile in July, stocks rose. "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.

The U.S. blue-chip index is down 1.1% this week and the S&P 500 is 1.6% lower, facing its worst weekly performance since November.

Stocks are opening lower on Wall Street as investors find little to like in the latest batch of corporate earnings.

Markets had earlier stabilised as USA secretary of state Rex Tillerson tried to ease the tensions, saying he did not believe there is "any imminent threat" to Guam and that diplomacy would prevail.

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The dollar index, which measures against a basket of currencies, fell 0.05 percent.

Significant strength was also visible among software stocks, as reflected by the 1.2 percent gain posted by the Dow Jones Software Index.

Emerging market stocks lost 1.20 percent. The number of people quitting their jobs also dropped.

"If we break above this downtrend, then we potentially open up the region up to $1,300, the recent highs we saw in April and June", Butler said. If you look at the gold price after the CPI data, it tells you that the Fed is not going to be in any rush to increase the interest rate this year.

ANALYST'S TAKE: The U.S.jobs figure "was through the roof" and the NFIB survey "painted a much better picture for the U.S. economy than most believed", Stephen Innes of OANDA said in a report.

It was not only the threat of conflict with nuclear-ambitious North Korea. The US currency was down 0.3 per cent at 109.94 yen, following a retreat to 109.740, its weakest since June 15th.

Shire fell 1.1%, as the pharmaceutical firm shares were hit by a downgrade to Equal Weight from Overweight by Barclays.

USA crude (CLc1) was unchanged at $48.59 per barrel and Brent (LCOc1) was last at $51.84, down 1.63 percent on the day.

Josh Saul, chief executive officer of London-based The Pure Gold Company, which is among the bullion merchants reporting incremental trading, said: "We've seen a 64% increase in people purchasing physical gold for the first time in recent sessions citing the breakdown of worldwide relations".

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