Investors Flock Into Safe-havens Assets, Gold Jumps The Most in Two Months
Aug, 09th 14:22
Gold futures rallied on Wednesday as investors moved toward safety plays amidst escalating tension between North Korea and the U.S. that dragged down U.S. shares. U.S. stock benchmark index extended a modest retreat from record levels logged earlier this week.
The precious metal surged 1.24 percent to trade at $1,272.00 an ounce in North American trading session, looking set to record the biggest jump in two months. Investors piled into safe-havens assets like gold as geopolitical tensions have ramped up, sapping investors’ appetite for risky investments.
In response to a Washington Post report on North Korea’s nuclear capabilities, U.S. President Donald Trump late Tuesday said that any threat North Korea presented to the United States would be met with “fire and fury.” Just hours after Trump’s threats, North Korea announced that it is “carefully examining” plans for firing a ballistic missile toward U.S. Pacific territory of Guam.
The Dow Jones Industrial Average lost nearly 0.3 percent, the S&P 500 index shed 0.36 percent while the Nasdaq Composite Index even declined more sharply, slipping more than 0.7 percent.
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