Gold settles at 2-month high amid geopolitical tensions

Cheryl Sanders
August 11, 2017

The overall financials group, which accounts for roughly a third of the index slipped 0.9 percent.

In Europe, Germany's DAX fell 1.1 percent, while France's CAC 40 slid 1.4 percent.

The dollar index, which tracks the greenback against six rival currencies, was down 0.17 percent to 93.391.

The Dow Jones industrial average lost 71 points, or 0.3 percent, to 22,013.

But much better data on United States job openings from a survey called JOLTS shocked the market, leading equities on both sides of the Atlantic to push into positive territory.


The remarks, following North Korea's earlier revelation of a plan to launch a salvo of ballistic missiles toward the U.S. Pacific territory of Guam, gave investors a reason to pocket profit in the sectors, such as technology, that have been the biggest gainers in recent months, analysts said.

The market's main backstop in times of strain, gold, hit a two-month high of $1,282 an ounce amid the nervousness.

Data from the U.S. Commodity Futures Trading Commission released last week showed that currency speculators still held a large net short position in the yen during the week ended August 1, although somewhat smaller than the levels seen a couple of weeks earlier, when their bearish bets against the yen grew to the largest since January 2014. The 10-year German bund yield traded at 0.426 percent while the 10-year US yield declined to 2.24 percent.

Hong Kong stocks dipped sharply at the open: Falls in China have been nearly doubled by Hong Kong's Hang Seng index, which were down by 1.2% shortly after the index opened at 11:30am AEST. Travel-review website operator TripAdvisor was down 2.7 percent.

The euro was 0.14 percent higher against the dollar.


An index of 15 gold miners tracked by Bloomberg Intelligence climbed 1.1 per cent, led by Toronto-based Yamana Gold Inc.

Benchmark U.S. crude added 39 cents to settle at $49.56 a barrel on the New York Mercantile Exchange. Brent crude, used to price worldwide oils, declined 23 cents to $51.67 per barrel in London.

In other energy futures trading, wholesale gasoline was little changed at $1.62 a gallon, heating oil rose 2 cents to $1.65 a gallon and natural gas rose 6 cents to $2.88 per 1,000 cubic feet.

The Russell 2000 is up 39.82 points, or 2.9 percent.

The dollar fell to 109.85 yen from 110.48 yen late Tuesday.


Against the Swiss franc, it fared slightly better and was broadly flat on the day at 1.1319 francs per euro.

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