Gold price at ten month high after missile flies over Japan

This morning saw the gold price reach levels unseen since the election of US president Donald Trump, as North Korea’s continuing show of military strength saw the rogue state launch yet another ballistic missile. The safe haven asset rose 0.9% to $1,322.41 after the launch, but later settled back to $1,318.00, according to the Financial Times.

The missile entered the Pacific Ocean 1,180 km east of Cape Erimo on Hokkaido, the second-largest Island of Japan, at around 06:00 BST.

The Japanese government issued an alert to residents to take coverthe fact that a crisis-like response was observed marks a notable increase in the gravity of the situation. “Although investors have become sensitized to such actions by [North Korean leader Kim Jong-un’s] regime, firing missiles over Japan is a rare occurrence and the message appears to be that North Korea is ready to escalate tensions,” said Hussein Sayed, chief market strategist at FXTM.

Japan’s prime minister Shinzō Abe told reporters that “North Korea’s reckless action is an unprecedented, serious and a grave threat to our nation”.

The gold price was also aided by a weaker dollar, as hopes for faster economic growth in the world’s largest economy begin to fade. Many had bet on the gold price falling in the wake of a Trump-led $500bn infrastructure spending program, in the hope that it would lead to strong US economic expansion, higher interest rates and a more robust dollar, however this appears to have not yet been realised.

Photo credit: Stefan Krasowski. Licensed under CC BY 2.0

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-at-ten-month-high-after-missile-flies-over-japan-13369/

Posted by on Aug 29 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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