Gold steady near 2-month highs on N. Korea tensions

Gold steady near 2-month highs on N. Korea tensions

Gold steady near 2-month highs on N. Korea tensions

"Equities look set to end this week on a downer, as geopolitical uncertainty regarding North Korea shakes volatility from its 2017 slumber", said Accendon Markets analyst Mike van Dulken.

But "the yen may be expected to lose its safe haven status if US-North Korean tensions continue to escalate", leaving the Swiss Franc, and possibly the US dollar, as the remaining beneficiaries of risk aversion, Emmanuel Ng, currency strategist at OCBC Bank in Singapore, wrote in a note.

Besides, persistent buying by local jewellers at domestic spot market stoked the uptrend.

The Swiss franc CHF= and the yen notched big gains against the dollar on Wednesday after U.S. President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States.

The negative headlines provided many investors with an opportunity to pocket some of their recent gains following a string of record highs fueled by strong corporate earnings. The precious metal had gained Rs 670 in last three days.

The S&P 500 dropped 1.4% to 2438.21, while the Dow Jones Industrial Average fell 204.69 points, or 0.9%, to 21,844.01.

The CBOE Volatility Index, the most widely followed barometer of expected near-term U.S. stock market volatility, hit its highest mark since November 8, when Mr Trump was elected President of the US.

Phipps said investors were reassured after Dallas Fed President Rob Kaplan's said on Friday that the Fed needs more evidence of progress toward its inflation goal before raising rates again.

Randgold is producing record amounts of gold each quarter and its transition from contract mining to owning its mining assets should help improve efficiencies and lower operating costs.

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Gold got an extra boost after data showed USA consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.

In the eurozone, the Paris CAC 40 lost 0.6 percent and Frankfurt's DAX 30 shed some 1.2 percent.

The Standard & Poor's 500 index fell 24 points, or 1 percent, to 2,449 as of 2:16 p.m.

Economic data showed USA producer prices unexpectedly fell in July, recording their biggest drop in almost a year, while separate figures showed the number of Americans filing for unemployment benefits unexpectedly rose last week. Financial companies and department store operators were among the big decliners.

With Japanese markets closed for a public holiday, Hong Kong led the downward charge in Asia-Pacific as the Hang Seng lost more than two percent.

US Secretary of State Rex Tillerson on Wednesday warded off - at least for now - the prospect of massive losses on the Wall Street market after stressing that there was "no imminent threat of war" and that Americans could "sleep well at night".

US crude oil tumbled 2% to $48.59/bbl, failing to hold above $50 as a report from OPEC showed crude production among the group's members rose in July. The Russell 2000 index of smaller-company stocks gave up 13.20 points, or 0.9 percent, to 1,396.95. This morning gold had reached $1,286.33 while gold for delivery in December rose 0.8% to $1,290.10.

The local currency was trading at 1,138.95 won against the U.S. dollar, down 3.75 won from the previous session's close. U.S. PPI came in at -0.1%, below the 0.1% forecast and previous read. In Australia, the S&P/ASX 200 was down 1.13%.

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