Markets

Gold Price Reacts to Trump's North Korea Comments

Gold Price Reacts to Trump's North Korea Comments

President Trump took aim at North Korea again on Thursday, saying that his earlier threat to unleash "fire and fury" may not have gone far enough.

"The people of this country should be very comfortable, and I will tell you this: If North Korea does anything in terms of even thinking about attack, of anybody that we love or we represent or our allies or us, they can be very, very nervous", Trump said.

Wall Street's so-called "fear gauge", the CBOE Volatility Index, hit the highest levels since Election Day on Friday (http://www.marketwatch.com/story/wall-streets-fear-gauge-on-course-for-biggest-weekly-surge-in-2-years-2017-08-11), after a spike on Thursday but was retreating in recent trade.

USA stocks rose Friday but still notched their biggest weekly loss in months, as investors were shaken by disappointing earnings results and an escalation of threats between the US and North Korea.

Wall Street got off on a downbeat start early Thursday as tensions between the US and North Korea continued to escalate, rattling markets overseas.

The benchmark Korea Composite Stock Price Index lost 39.76 points, or 1.69 percent, to 2,319.71. The slide deepened after Trump's remarks on North Korea.

The dollar index, which gauges the greenback against the currencies of six major U.S. trading partners, was last 0.2% down on the day during afternoon European trading hours - it stood at 93.20.




The nuclear-armed nation said it was finalizing plans to fire four intermediate-range missiles over Japan to land 18-25 miles from Guam. The S&P 500 gained 6 points, or 0.2%, to 2,444, supported by gains in consumer-discretionary, technology and health-care sectors.

Shares in several other big media companies also declined. Shares of Manulife, which reported better-than-expected results, fell after the company played down talk of a John Hancock spin-off.

In contrast to the USA market, global equities remained weak.

Bond prices rose. The yield on the 10-year Treasury note slipped to 2.25 percent from 2.26 percent late Tuesday. Core prices had been expected to rise by 0.2%.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average was up 54.38 points, or 0.25 percent, at 21,898.39, the S&P 500 was up 8.69 points, or 0.35 percent, at 2,446.90.

Investors bought bonds after the Labor Department said the consumer-price index increased 0.1% in July from the previous month. The Swissie also edged higher against the Euro, recording one of the largest single day rises since the January 2015 removal of the "peg" placed by the Swiss National Bank.

In terms of forex market movements, the U.S. currency lost significant ground relative to majors including the yen, sterling and the euro - most notably the latter one - as the news on inflation went public.