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PRECIOUS-Gold climbs to 9-1/2 month high on rising North Korea tensions
August 29, 2017 / 1:06 AM / a month ago

PRECIOUS-Gold climbs to 9-1/2 month high on rising North Korea tensions

    BENGALURU, Aug 29 (Reuters) - The price of gold rose to its
highest in nine and a half months on Tuesday as mounting
geopolitical tensions over North Korea's launch of a missile
that flew over Japan stoked demand for safe-haven assets, while
weighing heavily on the dollar and equities.
    
    FUNDAMENTALS    
    * Spot gold        rose 0.5 percent to $1,316.66 an ounce by
0048 GMT, after earlier touching its highest since early
November at $1,322.33. It gained 1.4 percent in the previous
session. 
    * U.S. gold futures         for December delivery were up
0.5 percent to $1,322.20 per ounce.
    * U.S. stock futures and Asian share markets tumbled on
Tuesday, while the yen jumped to four-month highs against the
dollar after North Korea's missile flew over northern Japan,
setting up a tense start to trading for markets in the
region.           
    * South Korea and Japan said the missile North Korea
launched early on Tuesday landed in Pacific waters east of
Hokkaido after flying over the northern Japanese island, in a
sharp escalation of tensions on the Korean peninsula.
            
    * President Donald Trump said on Monday he hoped a
government shutdown would not be necessary over his demand that
the U.S. Congress fund his proposed wall along the southern
border with Mexico.             
    * The U.S. goods trade deficit increased in July as exports
fell, suggesting that trade would make a modest contribution to
economic growth in the third quarter.             
    * The European Union's chief negotiator Michel Barnier said
on Monday he was concerned at the slow progress of Brexit talks,
while his British counterpart David Davis called for
"imagination and flexibility" to move on.             
    * As bond markets brace for an end to ECB stimulus,
reinvesting funds from maturing bonds the bank holds could
prevent the kind of "taper tantrum" that sent yields soaring in
2013 after the U.S. Federal Reserve signalled an end to its
bond-buying scheme.             
    * Gasoline prices surged to two-year highs on Monday as
Tropical Storm Harvey knocked out several refineries and
disrupted fuel production, while a back up in crude supplies
pushed U.S. crude oil futures down more than 2.5 percent.      
            
    * The Indian Commodity Exchange (ICEX) launched the world's
first diamond futures contracts on Monday to provide exporters
with a hedging tool.             
    
     DATA AHEAD (GMT) 
   
     1255  U.S.   Redbook                   weekly 
     1400  U.S.   Consumer Confidence       Aug 
     1430  U.S.   Texas Serv Sect Outlook   Aug 

 (Reporting by Apeksha Nair in Bengaluru; Editing by Kenneth
Maxwell)
  

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