Commodities Update: Gold holds on to gains as tensions rise between US and North Korea

US Equities went down as North Korea treated US statements as a declaration of war against the hermit state, saying it has the authority to shoot any US planes entering in her Airspace.

Gold steadied on Wednesday after reaching its highest in weeks ever since tensions started mounting again over the Korean and US war of words. Investors flocked to safe investments, as equities saw a decline after announcements making war claims were sent out by North Korean Government via Twitter.

Spot gold was nearly unchanged at $1,310.01 per ounce at 0636 GMT, after earlier marking its highest since Sept. 20 at $1,313.54. It gained over 1 percent in the previous session.

U.S. gold futures for December delivery rose 0.2 percent to $1,313.70 per ounce.

Equities in US witnessed a sharp sell and prices for risk aevrse markets started to gather momentum as North Korea’s Foreign Minister said that the country is treating Donald Trump’s tweets as a declaration of war against her.

Asian shares withered and the yen firmed against the backdrop of rising tensions on the Korean Peninsula, and as investors awaited fresh signals about the U.S. monetary policy outlook.

Posted on: 2017-09-26T16:23:00+05:00